Latest news with #SteveKelly
Hamilton Spectator
17-05-2025
- Business
- Hamilton Spectator
Amazon, worker union before Quebec labour tribunal over warehouse closures
MONTREAL - A Quebec labour tribunal has begun hearing a case against Amazon over the e-commerce giant's closure in January of seven warehouses in the province. Some 1,700 employees lost their jobs following Amazon's sudden termination of its Quebec warehouse operations months after workers at a Montreal-area facility unionized with the Confédération des syndicats nationaux. In a news release, the CSN union said it is asking the tribunal to overturn Amazon's decision to close the seven centres and force the company to pay all 1,700 workers one year's salary. The CSN says Amazon has asked the tribunal to exclude the six non-unionized warehouses and limit the scope of the hearing to 287 unionized workers at the facility in Laval, Que. 'We are hopeful that the court will see clearly and ensure that the labour laws and charters of rights that prevail in Quebec are respected,' CSN president Caroline Senneville said in a statement. Amazon has said its closures were about delivering efficient and cost-effective services to customers, not a response to the union drive. Steve Kelly, an Amazon spokesman, said employees were provided with a package that included up to 14 weeks' pay after the warehouses were shuttered, in addition to other transition benefits like job placement. 'Throughout this process, we've complied and will continue to comply with all applicable federal and provincial laws,' Kelly said. A spokesman for the union says the hearings are scheduled to take place intermittently over the next few months. This report by The Canadian Press was first published May 16, 2025.
Yahoo
14-05-2025
- Business
- Yahoo
FedEx, Amazon strike large-package delivery deal
This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. FedEx will deliver large packages to Amazon's residential customers under a multi-year agreement, FedEx said in an emailed statement Monday. The two parties signed a partnership deal in late February that provides Amazon "cost favorability" when compared to using UPS, Business Insider reported, citing an internal document. Further details of the arrangement, including its timing and scope, were not provided by FedEx or Amazon. "FedEx joins our other third-party partners like UPS and the USPS, that work alongside our own last mile delivery network to help us balance capacity to best serve customers," Amazon spokesperson Steve Kelly said in an emailed statement. The agreement marks a rekindling of the two parties' relationship nearly six years after FedEx announced it wouldn't renew its Ground and Express domestic shipping contracts with Amazon. At the time, FedEx said it wanted to focus on the broader e-commerce market. E-commerce remains a priority customer segment, but the carrier is making wide-ranging changes to its network that allow it to handle those deliveries more efficiently. That's particularly important in serving a customer like Amazon, which can offer large amounts of volume but often at a less profitable clip — a gripe UPS has had in its Amazon delivery arrangement. "Did UPS miss an opportunity here or is FedEx ahead in the network optimization race and is able to deliver these package types at a lower price compared to UPS and still make a profit?" said Jay Kent, managing director of SLB Performance, in a LinkedIn post. The deal's announcement comes after UPS said in January said it would cut its Amazon volume by more than 50% by the second half of 2026 due to profitability concerns. However, the FedEx agreement isn't meant to replace delivery capacity from UPS, according to Amazon. The arrangement meets a need for both companies, said Nate Skiver, founder of LPF Spend Management, in a LinkedIn post. FedEx gets a volume and revenue boost, while Amazon nabs support for harder-to-handle products. Skiver added that there's limited large-package delivery options for Amazon available in the U.S. parcel market, particularly for longer-distance shipments. "There's nowhere else to turn if UPS won't take it," he said. More than two-thirds of Amazon packages are delivered through its in-house logistics network in the U.S., according to the company. But large packages can be difficult to handle efficiently, even for Amazon and FedEx's highly automated networks. Parcel carriers typically institute fees for bulkier shipments, the cost of which has climbed in recent years. Recommended Reading UPS to cut Amazon volume by more than 50% Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Amazon and FedEx reach delivery deal following pullback by UPS
Amazon and FedEx have entered a package delivery deal. Business Insider reported, citing an internal document, that a new agreement between the e-commerce giant and delivery company was inked in late February. Under the deal, FedEx will transport some packages that Amazon customers have ordered to their doors on behalf of the e-commerce giant, according to the outlet. Amazon spokesperson Steve Kelly told FOX Business the company has "reached an agreement with FedEx to serve as one of several third-party partners to deliver packages to our customers." FedEx "joins our other third-party partners like UPS and the USPS, that work alongside our own last mile delivery network to help us balance capacity to best serve customers," he said. Amazon Denies Tariff Pricing Plan That White House Called 'Hostile And Political' Read On The Fox Business App In the U.S., the deliveries of more than two-thirds of Amazon's packages are taken care of by its own logistics network, according to Amazon. "FedEx has the global network, capacity, and expertise to serve the shipping needs of thousands of retailers in the e-commerce space. We have reached a mutually beneficial, multi-year agreement with Amazon to provide residential delivery of select packages, including large items," FedEx told FOX Business. Business Insider reported the internal document that it saw said Amazon will experience "cost favorability" compared to UPS through its partnership with FedEx. Ups has long been a third-party delivery partner of Amazon. In January, it and Amazon agreed that the e-commerce giant would trim the volume of Amazon packages it handles by more than 50%. Ups Cutting 20K Jobs Due To Fewer Amazon Shipments The purpose of the new partnership with FedEx is not to take the place of UPS, according to Amazon. FedEx previously had a partnership with Amazon that included a deal to make U.S. ground deliveries. That contract ended in 2019. Brie Carere, executive vice president and chief customer officer at FedEx, said at a Bank of America conference on Monday that the delivery company "just struck a new deal" with Amazon, according to a SeekingAlpha transcript. She said the yield "will be accretive to our system average in the domestic market." "We have a very unique capability that we cover all ZIP codes in the U.S., and we also move heavy, hard-to-handle packages better than anyone at all," she said, adding that the business will be "predominantly large package." Asked whether the packages will be bulky or freight, Carere said it was "going to move in our surface network." "It will be part of the FedEx Ground portfolio, so it's not quite that big," she explained. "It will be parcel, but it is heavier weights. It's going to push up our average weight per package, and it will push up our yield." Carere told the host it "will not be our largest customer" but FedEx "feel[s] good about" the new deal with article source: Amazon and FedEx reach delivery deal following pullback by UPS Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Amazon taps FedEx for big-and-bulky residential deliveries
Six years after breaking up, Amazon and FedEx are back together. The retail giant has reached a long-term agreement with FedEx to provide limited residential package delivery, the companies have confirmed. Amazon (NASDAQ: AMZN) recently added FedEx (NYSE: FDX) to its roster of vendors providing last-mile transportation of goods purchased on its marketplace, Amazon said in a statement provided by spokesman Steve Kelly. 'FedEx joins our other third-party partners, like UPS and the U.S. Postal Service, that work alongside our own last-mile delivery network to help us balance capacity to best serve customers,' the statement said. FedEx said in a separate statement that the multiyear agreement covers 'residential delivery of select large packages for Amazon.' FedEx Chief Commercial Officer Brie Carere, speaking Monday evening at a Bank of America investor conference, noted the Amazon contract will be financially accretive with yields and weights above system average in the U.S. ground market, according to a transcript of the event. She said the deal leverages FedEx's ability to move heavy, hard-to-handle packages across all U.S. ZIP codes. More than two-thirds of packages shipped by Amazon are delivered by its own network of warehouses and delivery drivers, according to the company. Few details of the deal, including expected volumes for FedEx, were disclosed. Amazon vehemently denied that the deal is intended to replace service provided by UPS, which decided in January to reduce Amazon volumes by more than 50% by mid-2026 because the business wasn't profitable. UPS recently said the decoupling with Amazon, its largest customer in 2024, will result in 20,000 jobs being eliminated. Business Insider broke the story on Monday with a report, based on an internal Amazon email, that said FedEx will take over the Amazon package business previously handled by UPS (NYSE: UPS). FedEx offered better pricing than UPS, according to the publication. The report also said that FedEx will support Amazon's Extra Large delivery network, AMXL, which is responsible for fulfilling orders, delivery and installation for large, heavy and bulky items, such as furniture and appliances. Amazon said that 'the reference to AMXL is premature at this point.' In 2019, FedEx ended its domestic ground-delivery contract with Amazon because of what it perceived as difficult service requirements and low yields. Estimates at the time suggested FedEx transported 4% of Amazon's ground traffic. Prior to the split, Amazon had diverted much of its business from FedEx's SmartPost service (since removed), in which FedEx Ground tendered packages to the U.S. Postal Service for final deliveries to residences. 'Given this new business [for heavy and large packages] is likely to support above average revenue per shipment, we expect the mix contribution from new Amazon deliveries should support higher yields for FedEx's core domestic package network operation,' said Barclays' transportation analyst Brandon Oglenski in a research note. 'We suspect this new deal with Amazon is likely to be more favorably priced than in the past and aligns with the company's broader focus on improving revenue quality within the network.' Oglenski said he suspected higher pricing from UPS at least partially explains Amazon's motivation to add another delivery partner. FedEx is likely able to take a second look at Amazon now because the company's business optimization and efficiency campaign, combined with the merger of the Express and Ground networks, is significantly reducing its cost structure. With lower operating costs, FedEx can offer more competitive pricing, Oglenski said. As UPS downsizes domestic capacity to reflect the departure of Amazon volumes, it will likely increase parcel prices with remaining customers to offset reduced economies of scale, he added. 'We expect higher pricing from UPS over the long-run will create incremental opportunities for FedEx to capture market share given the cost disparity we see developing between the two package delivery competitors,' Oglenski said. Click here for more FreightWaves/American Shipper stories by Eric Kulisch. UPS to eliminate 20K jobs as Amazon decoupling accelerates Analyst: Amazon's $4B rural delivery investment aimed at slowing Walmart DHL cuts ties with cargo airlines as efficiency initiative ramps up FedEx converts parcel freighter to heavy cargo operation The post Amazon taps FedEx for big-and-bulky residential deliveries appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wall Street Journal
12-05-2025
- Business
- Wall Street Journal
Amazon Seals New Partnership With FedEx for Delivering Large Packages
Amazon AMZN 8.07%increase; green up pointing has added FedEx FDX 6.94%increase; green up pointing triangle as a partner to deliver select large packages to homes for the online retailer, as the two companies find more ways to do business together after a previous split. 'We've reached an agreement with FedEx to serve as one of several third-party partners to deliver packages to our customers,' Amazon spokesman Steve Kelly said Monday.
