US CEP Market Experiences Shifts in Demand, Pricing Power, and Competition

Customer RelationsHigh Tech / High Touch
Written By Jennifer Joslyn

The US Courier, Express, and Parcel (CEP) market has seen a decline in demand and a shift in consumer spending patterns, leading to decreased package deliveries. Major carriers like FedEx and UPS, who previously had the upper hand in pricing negotiations, are now becoming more aggressive to remain competitive. Additionally, the emergence of regional carriers and the potential reemergence of Amazon's shipping arm contribute to a more open and competitive market. However, uncertainties such as a potential UPS strike and Amazon's dominance pose challenges for shippers in navigating the evolving landscape.

Read more from Reuters Events ▶

Featured
Supreme Court Decision Clarifies Status of Delivery Drivers as Transportation Workers
Supreme Court Decision Clarifies Status of Delivery Drivers as Transportation Workers

In a notable Supreme Court ruling, written by Chief Justice John Roberts, it was unanimously decided that truck drivers hauling products like bread are in the transportation sector, not bakery workers.

Shipping Costs Rising in Select L.A. County ZIP Codes
Shipping Costs Rising in Select L.A. County ZIP Codes

If you're using FedEx or UPS for shipping, especially in Los Angeles County, keep an eye on your bills – they're about to go up.

FedEx's Potential Profit Boost is From Rethinking the Postal Partnership
FedEx's Potential Profit Boost is From Rethinking the Postal Partnership

FedEx might actually benefit from losing its colossal contract with the U.S. Postal Service, according to Brandon Oglenski, an analyst at Barclays Bank.

Fast-Fashion Giants Shein and Temu Disrupt Global Air Cargo Industry
Fast-Fashion Giants Shein and Temu Disrupt Global Air Cargo Industry

The rise of fast-fashion e-commerce giants like Shein and Temu is shaking up the global air cargo sector, according to industry insiders.

DeliverDirect is Revolutionizing E-Commerce Shipping with Delta Cargo and SmartKargo Partnership
DeliverDirect is Revolutionizing E-Commerce Shipping with Delta Cargo and SmartKargo Partnership

Efficiency in e-commerce shipping is crucial, and Delta Cargo and SmartKargo have joined forces to tackle common pain points for small parcel shippers.

UPS Expands Saturday Home Delivery Service Across Canada
UPS Expands Saturday Home Delivery Service Across Canada

Oh, Canada! UPS is launching a new Saturday home delivery service in key Canadian markets, starting with Toronto and expanding to Greater Vancouver, Montreal, Calgary, and Laval by March.

UPS Plans to Cut 12,000 Jobs in Cost-Saving Effort Amid Revenue Decline
UPS Plans to Cut 12,000 Jobs in Cost-Saving Effort Amid Revenue Decline

UPS is set to cut 12,000 jobs in a cost-saving move aimed at reducing expenses by $1 billion.

Walmart's Major Drone Delivery Expansion
Walmart's Major Drone Delivery Expansion

Walmart has unveiled its largest drone delivery expansion plan, covering 1.8 million households in the Dallas-Fort Worth area.

Walmart Aims to Empower Employees in Expanding Last-Mile Delivery Services
Walmart Aims to Empower Employees in Expanding Last-Mile Delivery Services

Walmart is planning to increase the involvement of its employees in making last-mile deliveries as it expands its third-party fulfillment capabilities, according to President and CEO Doug McMillon.

U.S. Postal Service Ends Holiday Surcharges for Competitive Edge
U.S. Postal Service Ends Holiday Surcharges for Competitive Edge

The U.S. Postal Service has announced that it will not impose peak season surcharges during the upcoming holiday season.

Walmart Teams Up with Alphabet's Wing for Drone Delivery Expansion in Dallas Metro Area
Walmart Teams Up with Alphabet's Wing for Drone Delivery Expansion in Dallas Metro Area

Walmart is expanding its drone delivery service by partnering with Wing Team, powered by Alphabet (Google's parent company).

Delivery Providers Pickup Now and Point Pickup Merge to Create a Comprehensive 'One-Stop Shop
Delivery Providers Pickup Now and Point Pickup Merge to Create a Comprehensive 'One-Stop Shop

Delivery providers Point Pickup Technologies and Pickup Now have merged to create a unified source for nationwide on-demand deliveries.

4 Factors Driving Food and Beverage Producers Toward Expanding Drop-Trailer Shipping
4 Factors Driving Food and Beverage Producers Toward Expanding Drop-Trailer Shipping

Despite significant changes in consumer lifestyles during the pandemic, the trend of increased beverage consumption between Memorial Day and Labor Day has persisted.

Postal Service Slashes Air Cargo by 90% in 2-Year Cost-Cutting Drive
Postal Service Slashes Air Cargo by 90% in 2-Year Cost-Cutting Drive

The U.S. Postal Service has drastically decreased its air cargo shipments by 90% over a two-year period, leading to an estimated $1 billion in annual transportation cost savings, according to U.S. Postmaster General Louis DeJoy.

Alibaba's Cainiao Introduces Half-Day Express Delivery in 8 Major Cities to Boost Consumption
Alibaba's Cainiao Introduces Half-Day Express Delivery in 8 Major Cities to Boost Consumption

Alibaba's logistics arm, Cainiao Network, has introduced its half-day express delivery service in eight major Chinese cities, including Shanghai, Hangzhou, and Shenzhen.

Amazon Accelerates Fast-Delivery Capabilities in the Post-COVID Era
Amazon Accelerates Fast-Delivery Capabilities in the Post-COVID Era

Amazon.com Inc. is doubling down on its fast-delivery capabilities for its Prime service following a temporary slowdown during the pandemic.

Unwavering Shipper Loyalty Remains Amidst Looming UPS Strike Threats
Unwavering Shipper Loyalty Remains Amidst Looming UPS Strike Threats

Despite the looming threat of a UPS strike, many companies have not shifted their package volumes to other carriers.

OnTrac Expands Delivery Services to Texas, Reaching 80% of the U.S. Population Across 31 States
OnTrac Expands Delivery Services to Texas, Reaching 80% of the U.S. Population Across 31 States

OnTrac, an e-commerce parcel carrier, has expanded its delivery network into major Texas markets, including Dallas-Fort Worth, Austin, Houston, and San Antonio.

Possibility of UPS Strike Triggers Changes in Logistics Sector as Negotiations Continue
Possibility of UPS Strike Triggers Changes in Logistics Sector as Negotiations Continue

As negotiations between UPS and the Teamsters Union continue, the possibility of a strike is already having an impact on the logistics sector.

UPS Negotiations Resume as Shippers Hope for Resolution on Part-Time Employee Pay Issue
UPS Negotiations Resume as Shippers Hope for Resolution on Part-Time Employee Pay Issue

Negotiations between UPS and the Teamsters Union have resumed after a pause, bringing hope to UPS shippers.

Amazon Offers Delivery Partnership to Main Street Businesses
Amazon Offers Delivery Partnership to Main Street Businesses

Amazon is seeking to recruit 2,500 small businesses across 23 states in the US to participate in its "Amazon Hub Delivery" program, aiming to enhance package delivery capabilities.

Potential UPS Strike Threatens Supply Chain Chaos and Economic Impact
Potential UPS Strike Threatens Supply Chain Chaos and Economic Impact

With the July 31 strike deadline approaching for Teamsters at UPS, concerns are growing about the potential impact on the supply chain and the economy.

A 10-day UPS strike could be the costliest in US history
A 10-day UPS strike could be the costliest in US history

A potential 10-day strike by UPS workers in the US could have significant economic consequences, estimated to cost the country $7.1 billion, according to an analysis by Anderson Economic Group.

150 Million Packages Delivered by Rivian Electric Vehicles
150 Million Packages Delivered by Rivian Electric Vehicles

Amazon has announced that it has successfully delivered over 150 million packages using Rivian's electric vehicles (EVs).

Food Delivery Platforms Sue New York City Over Minimum Pay Rules for Workers
Food Delivery Platforms Sue New York City Over Minimum Pay Rules for Workers

Uber Eats, DoorDash, Grubhub, and Relay Delivery have filed lawsuits against New York City to block the implementation of new minimum pay rules for food delivery workers.

US CEP Market Experiences Shifts in Demand, Pricing Power, and Competition
US CEP Market Experiences Shifts in Demand, Pricing Power, and Competition

The US Courier, Express, and Parcel (CEP) market has seen a decline in demand and a shift in consumer spending patterns, leading to decreased package deliveries.

FedEx Freight Braces for Continued Volume and Margin Pressures Through August
FedEx Freight Braces for Continued Volume and Margin Pressures Through August

FedEx Freight is anticipating continued challenges in volume levels and profit margins in the next quarter, despite implementing cost-cutting measures.

USPS Faces Decline in International Volume, Affecting Cross-Border E-commerce Market
USPS Faces Decline in International Volume, Affecting Cross-Border E-commerce Market

The U.S. Postal Service (USPS) is experiencing a significant decline in international volume, despite the growth of cross-border e-commerce.

FedEx Anticipates No Benefit from UPS-Teamsters Negotiations
FedEx Anticipates No Benefit from UPS-Teamsters Negotiations

FedEx does not expect any significant benefits from the ongoing labor negotiations between UPS and the International Brotherhood of Teamsters, according to EVP and Chief Customer Officer Brie Carere.

Parcel consultants predict significant rate increases in 2024
Parcel consultants predict significant rate increases in 2024

Parcel consultants anticipate significant rate increases of 6% to 10% in base rates and accessorials charges for 2024.

Jennifer Joslyn
Previous

Pedestrian Fatalities Soar to a 40-Year High in the United States
Next

BP Invests in Innovative Fuel for Ships Made from Everyday Garbage