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Miami Herald
a day ago
- Business
- Miami Herald
FedEx layoffs signal a concerning statewide trend that could grow
We have gotten very spoiled when it comes to how quickly our online orders get delivered. Just a couple of years ago, circa 2018, we had to wait an average of three days for those Amazon packages to make it to the front door (10 years ago, it was more like six days). Now, the average order-to-delivery time is 1.9 days, according to a 2024 Science Direct report. More and more consumers are demanding same-day delivery, and delivery companies are certainly scrambling to meet expectations. Don't miss the move: Subscribe to TheStreet's free daily newsletter The industry that has made this magic happen and satisfy our collective "I want it now" desires - looking at you, Veruca Salt - is shipping and logistics. Business in this sector has been booming. Companies like FedEx, UPS, and Amazon have invested billions in building faster, more efficient distribution networks to meet the demand for next-day and same-day delivery. Third-party logistics (3PL) providers have grown, giving retailers and manufacturers flexible, outsourced options for warehousing, shipping, and fulfillment. The U.S. Postal Service has also upped its game, adding new services like Ground Advantage and Priority Mail Next Day to compete with UPS and FedEx. While the logistics business is growing, it's simultaneously facing volatility. Contracts between logistics providers and their clients have become more transactional and performance-based, rather than long-term partnerships. Companies will drop longstanding partners and switch to new providers if it means cost savings or faster delivery. Automation, robotics, and AI are also rapidly reshaping warehouse and supply chain operations, reducing the need for manual labor. All of this has made employment in the sector more vulnerable, with large-scale layoffs becoming increasingly common when business shifts. That's what's happening now in Fort Worth, Texas, where FedEx (FEDEX) is laying off more than 300 employees after a major client decided to take its business elsewhere. In a WARN notice filed with the Texas Workforce Commission, FedEx confirmed it will cut 305 jobs at its supply chain facility on Independence Parkway starting July 6, with layoffs continuing through October 25. The site currently employs about 580 people, meaning more than half the staff will be affected, as reported on Chron. FedEx said the cuts are due to one of its clients moving part of its logistics operations to another third-party provider. Related: USPS makes change to rival Amazon consumer will appreciate "The FedEx customer that occupies space on Independence Parkway in Fort Worth will be transitioning a portion of its business to a new third-party logistics provider in a new location," the company said in a statement. "We expect this transition to be complete at the end of October 2025," per the Chron story. More on retail and bankruptcy: Walmart store closing, auctioning off laptops and flat screen TVsHome Depot CEO sounds the alarm on a growing problemFamous restaurant files for Chapter 11 bankruptcy FedEx emphasized that the layoffs are not due to internal restructuring, but rather the result of changes in the customer's business needs-something FedEx says it cannot control. Impacted employees will be offered severance packages, relocation support, and help finding other roles, either within the company or externally. These cuts are sweeping across Texas, suggesting a broader trend in the Lone Star state. In addition to FedEx, companies like Chevron (200 jobs in Midland), Intel (as part of global cuts), and Lewisville ISD (500 school bus drivers) have all announced job reductions. In Fort Worth, nonprofit Child Care Associates may lay off over 300 workers due to federal funding uncertainty. The common thread: shifting contracts, budget constraints, and operational restructuring. The outsourcing of logistics to 3PLs has made providers like FedEx vulnerable to abrupt customer shifts. Contract relationships used to be more long-term but are now increasingly fluid. Companies are choosing partners based on pricing, technology, or delivery speed. The shifting nature of the business means dozens or even hundreds of jobs can disappear overnight when a contract gets canceled. Related: Major trucking company to shut down, no bankruptcy plans Meanwhile, the push for automation and AI is changing warehouse operations, allowing companies to do more with fewer workers. And with interest rates and inflation still pressuring corporate budgets, cost-cutting has become a top priority - even if it means disrupting long-established operations. Finally, regions like North Texas that have attracted large logistics investments are now exposed to the downsides of that growth. As companies reevaluate their supply chains and customer contracts evolve, these logistics hubs may face recurring waves of job instability. In the end, the Fort Worth layoffs are a sign of how the logistics industry is being reshaped and how that transformation is impacting the workforce at every level. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
6 days ago
- Business
- Miami Herald
USPS lowers overnight shipping prices to take down Fedex, UPS
Remember back in the olden days, circa 2015, when we had to wait six whole days to get our Amazon orders delivered? By 2018, the delivery window had shrunk to a barely tolerable three days (I joke). And today? The average delivery time is closer to two days, according to a 2024 Science Direct report. Don't miss the move: Subscribe to TheStreet's free daily newsletter The expectations around e-commerce delivery have certainly changed in a short time, and increasingly, plenty of us want our goods delivered on the same day we order them. The demand can be crushing for retailers and carriers, including small businesses that are trying to compete with the Amazons and Walmarts of the world. They're looking for ways to deliver quickly at an affordable cost. The United States Postal Service (USPS) may be a much-maligned institution, often criticized being slow and overpriced, but this time it's trying to be a problem-solver. To meet consumers' expectations, the USPS has quietly launched Priority Mail Next Day, a new service aimed at online retailers and small businesses. The new service allows businesses to get their goods into the hands of their customers within a day. In order for packages to be eligible for the next-day service, the packages (20 pounds or less) have to be delivered to a USPS processing center by 6 p.m. If they arrive after that cutoff, they'll be delivered in two days. Priority Mail Next Day is available by contract only, meaning it's for businesses with an agreement with the USPS. It is currently available in 62 U.S. markets with plans to expand. Related: Major logistics and trucking company files Chapter 11 bankruptcy Despite its limited rollout, USPS officials hinted at nationwide ambitions for Priority Mail Next Day, according to a USPS informational webinar. Since each contract is based on a business's volume, the USPS does not publish shipping rates for the new service. The launch of Priority Mail Next Day highlights the intensifying competition among the "big three" carriers: USPS, FedEx (FEDEX) , and UPS (UPS) . All three are racing to serve the growing needs of e-commerce sellers, particularly in regional and last-mile delivery zones. While FedEx and UPS have long dominated premium overnight shipping, their services often come with complex rate structures, fuel surcharges, and rural delivery fees, all costs that eat into retailer margins. USPS is working to position itself as the simpler and more cost-effective alternative to UPS and FedEx, without frills or complicated fees. The new Priority Mail Next Day is an extension of the USPS Ground Advantage program which launched in 2023 and offers a two- to five-day delivery window. Unlike the new overnight service, anyone can ship via Ground Advantage, no contract required. Both options make USPS attractive to small and mid-sized online retailers that need reliable regional shipping but lack the volume to negotiate steep discounts from FedEx or UPS. More retail: Aldi releases viral Trader Joe's item that is always out of stock Home Depot, Lowe's rivals strategic growth planTrader Joe's making huge mistake not copying Walmart, Target Nearly 70% of consumers say fast shipping influences their decision to complete a purchase, according to Digital Commerce 360, and Capital One Shopping says 80% of consumers expect retailers to offer same-day delivery. This growing expectation is putting increased pressure on retailers and carriers alike, so businesses, including mom-and-pop independent retailers, are constantly searching for shipping solutions that meet customer expectations without breaking their logistics budgets. One issue that is likely to increasingly plague retailers and that no carrier can solve: the faster the delivery time, the more likely the products are to be returned. That's according to a Science Direct study that looked at how shorter delivery times affect returns. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Epoch Times
13-05-2025
- Business
- Epoch Times
US Postal Service to Raise Shipping Charges by Over 6 Percent
The U.S. Postal Service (USPS) intends to increase shipping prices effective July 13 and has filed a notice with the Postal Regulatory Commission on the matter, the agency said in a 'The changes would raise domestic shipping services prices approximately 6.3 percent for Priority Mail service, 7.1 percent for USPS Ground Advantage, and 7.6 percent for Parcel Select. Prices are not changing for Priority Mail Express service,' the company said on May 9. Priority Mail is one of the fastest delivery services offered by USPS, with packages arriving at destinations in two to three business days. Ground Advantage delivers in around two to five days, while Parcel Select is a solution for high-volume shippers, with packages taking two to eight days for delivery. The rate increases were approved by the Board of Governors last week. 'The USPS governors believe these new rates will keep the Postal Service competitive while providing the agency with needed revenue.' The rate changes will support USPS's $40 billion investments and continue the improvement and modernization of its operations, the postal service said. Pricing changes have been implemented as part of the Delivering for America initiative, a 10-year plan introduced in 2021 that aims to Related Stories 4/10/2025 5/9/2025 USPS revealed its Q2 financial 'As we mark 250 years of service to the nation, our organization continues to face economic headwinds. We are working diligently to control costs, increase revenues, and transform and modernize our infrastructure,' said acting Postmaster General Douglas Tulino. 'At the same time, we are seeing strong market acceptance of shipping products like USPS Ground Advantage and adopting an increasingly competitive posture across our product portfolio.' In fiscal year 2024, USPS reported a net loss of $9.5 billion, up by $3 billion compared to the previous fiscal year. USPS has initiated several cost-cutting measures to improve its financial position. On March 13, former Postmaster General Louis DeJoy said USPS had Leadership Change USPS is currently changing leadership. Following DeJoy's resignation in March, the USPS Board of Governors elected David Steiner as Postmaster General and CEO, the agency said in a May 9 Steiner serves on the board of USPS competitor FedEx and other companies. He is expected to leave the FedEx board before joining USPS, the service said. 'We anticipate Steiner will formally join the organization in July, assuming his successful completion of the ethics and security clearance vetting processes.' The National Association of Letter Carriers, a union representing 295,000 active and retired letter carriers, had Appointing Steiner to lead USPS is a 'clear conflict of interest,' it said. 'His selection isn't just a conflict of interest—it's an aggressive step toward handing America's mail system over to corporate interests.' 'Private shippers have been waiting to get USPS out of parcel delivery for years. Steiner's selection is an open invitation to do just that.' Nonprofit advocacy Keep US Posted, dedicated to the long-term health of USPS, supported the appointment of Steiner in a May 7 Kevin Yoder, Keep US Posted executive director, said the group aims to work with Steiner to make sure the postal service prioritizes its long-term sustainability and ensures affordable access to mail for Americans. 'This is a pivotal moment for the Postal Service, as self-inflicted service failures, ever escalating costs, and volume-killing rate increases by Louis DeJoy under the Delivering for America plan have pushed USPS to the brink of failure,' he said. 'We are optimistic that Steiner's leadership will strengthen the institution's mission of delivering reliable, affordable mail services to every American, every day.'
Newsweek
11-05-2025
- Business
- Newsweek
USPS Update on New Shipping Services Prices for 2025
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The United States Postal Service (USPS) has announced that it plans to raise prices on its shipping services this summer. Why It Matters The Postal Service, the largest mail carrier in the country, is rolling out the rate increase as it strives to make its package delivery business more profitable. The independent federal agency has been facing financial struggles in recent years, having implemented a 10-year plan to stabilize in 2021. It reported a $9.5-billion loss in the fiscal year ending in September 2024, compared to a net loss of $6.5-billion in the fiscal year 2023. It reported a $3.3-billion net loss in the first quarter of 2025—nearly double during the same period last year. The USPS does not receive tax dollars for operating expenses and relies on the sale of postage, products and services in order to fund its operations. What To Know The USPS has announced it plans to increase prices for its Ground Advantage, Priority Mail and Parcel Select products beginning on July 13, according to a filing from the agency made on Friday. Priority Mail service will increase in price by 6.3 percent; 7.1 percent for USPS Ground Advantage; and 7.6 percent for Parcel Select. "Although mailing services price increases are based on the Consumer Price Index, shipping services prices are primarily adjusted according to market conditions," the postal service said in the announcement. "The USPS governors believe these new rates will keep the Postal Service competitive while providing the agency with needed revenue." A USPS mail truck leaves for a delivery in Fullerton, California, on July 18, 2020. A USPS mail truck leaves for a delivery in Fullerton, California, on July 18, 2020. GETTY There will be no price increases for Priority Mail Express, Domestic Extra Services, International Ancillary Services, or International Products. It follows on from the last price hike for shipping services, which took effect in January 2025. A separate request to the Postal Regulatory Commission made in April would also see the price of stamps rise this year. What People Are Saying The USPS said in a press release issued on May 9: "As part of the 10-year comprehensive strategic Delivering for America plan, these proposed changes will support the Postal Service in creating a revitalized organization capable of achieving its public service mission—providing a nationwide, integrated network for the delivery of mail and packages at least six days a week—in a cost-effective and financially sustainable manner over the long term, just as the U.S. Congress has intended." What Happens Next The price increases were approved by the USPS Board of Governors this week, and will be implemented on July 13 pending approval from the Postal Regulatory Commission.
Yahoo
22-04-2025
- Business
- Yahoo
FedEx, UPS alternatives grew market share in 2024: ShipMatrix
This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. Retailers' private fleets and alternative carriers snagged market share from major delivery companies last year, according to an April 10 report from ShipMatrix, a parcel shipping consultancy and analytics provider. Carriers outside of FedEx, UPS, the U.S. Postal Service and Amazon's logistics arm delivered 2.3 billion packages domestically in 2024, up 44% from the year prior. In turn, their market share by volume grew from 7% to 10%. Most U.S. parcel volume growth over the next three years will come from the private networks of Amazon, Walmart and other retailers, "resulting in a flat to negative growth for UPS, FedEx and USPS," ShipMatrix estimates. U.S. parcel market share by volume since 2019 This embedded content is not available in your region. Delivery options outside the four dominant carriers have grown in popularity since the COVID-19 pandemic squeezed capacity and opened the door for shippers to explore other providers. Top retailers are opting to build in-house delivery networks that lean on order fulfillment from their robust roster of stores. For example, Walmart can now reach 93% of U.S. households with same-day delivery after expanding coverage with its Spark driver platform. Target leans on its Shipt subsidiary for delivery from its stores and sortation centers. The continued growth of top retailers' internal delivery capabilities risks "further reducing the addressable market for FedEx, UPS and the U.S. Postal Service," per ShipMatrix. For shippers without the level of resources of Target or Walmart, there's an array of smaller parcel carriers to choose from — such as OnTrac, Veho and Better Trucks — that have expanded their coverage areas in recent years. The growth of these delivery providers has been enabled in part by shippers seeking ways to limit the increasing rates and fees of larger carriers. Stitch Fix, Lulu's Fashion Lounge Holdings and Lovesac all announced last year they added new delivery options to save on shipping costs. In the face of heightened competition, FedEx and UPS have offered up aggressive discounts for customers and pursued volume from more lucrative industries like healthcare. The Postal Service has secured more direct contracts from shippers for its newer product offerings like Ground Advantage. Recommended Reading Alternative delivery providers ramp up service coverage Sign in to access your portfolio
