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Yahoo
4 days ago
- Business
- Yahoo
UPS driver buyout offers: Carrier eyes Aug. 31 start to separations
This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. Dive Brief: UPS is offering voluntary buyouts to its full-time U.S. drivers amounting to $1,800 per year of service, with a minimum payout of $10,000, according to an announcement from the carrier Friday. Interested drivers must apply for the program between July 18 and July 31, according to a UPS employee communication viewed by Supply Chain Dive. Applicants will be considered for separation dates between Aug. 31 and Oct. 31 "based on the local needs of the business." "If the maximum number of applications is exceeded, approvals will be granted in seniority order," the communication said. "Additional applications may be considered for separation dates between Feb. 1, 2026, and March 31, 2026." Dive Insight: The undertaking, called the Driver Voluntary Separation Program, is the first in UPS' history for delivery drivers. The financial incentive available through the program is in addition to earned retirement benefits like pension and healthcare, per UPS. Word of the program spread on July 3, when the International Brotherhood of Teamsters union said UPS' buyout plan was in motion. The Teamsters represent more than 300,000 UPS employees under a five-year contract reached in 2023. 'Our members cannot be bought off and we will not allow them to be sold out," Teamsters General President Sean O'Brien said in the union's announcement. "The Teamsters are prepared to fight UPS on every front with every available resource to shut down this illegal buyout program." The union urged members to reject the buyout offers in a LinkedIn post on Friday. UPS did not specify what would happen if a lower-than-expected number of drivers applied for the program. UPS is enacting the buyout program in the midst of a major network overhaul to boost profitability, which will feature several facility closures and an over 50% volume reduction from Amazon, its top customer. The initiative also comes after the carrier revealed plans in April to cut roughly 20,000 U.S. positions this year. "As we work through our network reconfiguration, we remain steadfast in our commitment to providing our customers with the reliable, industry-leading service they expect from UPS," the company said in Friday's announcement. Recommended Reading UPS plans 20K job cuts this year as Amazon pullback advances
Yahoo
16-07-2025
- Business
- Yahoo
Parcel carrier Deliver It closes, preps for bankruptcy process
This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. Western U.S. parcel carrier Deliver It has shut down and is preparing for Chapter 7 bankruptcy proceedings, marking another exit in a competitive U.S. delivery industry. The company specialized in next-day shipping to consumers in the Western U.S., including California, Arizona and Nevada, per its website. As of March, Deliver It had over 700 employees and contractors involved in the delivery of roughly 40,000 packages daily for dozens of customers. Deliver It's closure, confirmed by Chief Commercial Officer Kendra Jackson on LinkedIn, marks an abrupt end for the regional carrier, which has faced financial challenges this year. In February, a group petitioned for an involuntary Chapter 7 bankruptcy of DI Overnite, LLC — which did business as Deliver It — in U.S. Bankruptcy Court for the Central District of California. The petitioners said Deliver It hadn't paid the nearly $1.2 million it owed them "despite repeated demands for payment." Deliver It CFO Joseph Varraveto responded in a March 6 court filing, saying the petition was a surprise and "has caused and is continuing to cause irreparable harm to [Deliver It]'s business and operations." The petition resulted in its bank Pathward freezing a $20 million revolving line of credit, Varraveto said, adding that Deliver It would be forced "to immediately shutter operations" if the freeze remained in place. In a separate filing the same day, Deliver It requested an interim order from the judge that would clear the way for Pathward to unfreeze the line of credit. The filing noted Deliver It owed the bank nearly $10.6 million plus interest, fees and additional costs as of Feb. 21. A final order approving that emergency motion was granted on April 21. Deliver It called for the petition to be dismissed and denied several of the petitioners' claims in a March 19 filing, but the company's tune changed a few months later. Deliver It said on July 8 it would consent to Chapter 7 bankruptcy proceedings, resulting in a judge ordering the process to commence in a separate filing. Deliver It's demise adds to the list of delivery providers that have shut their doors since 2024 after falling short in a competitive market, including Pitney Bowes' e-commerce logistics unit, Pandion and Maergo. Consolidation in the parcel shipping space is expected to continue due to heightened rate discounts from major carriers, a drop in e-commerce volumes from China, slowing investment activity and other headwinds, Derek Lossing, founder of Cirrus Global Advisors and a former Amazon Logistics leader, said in a LinkedIn post last week. "There is no need for the number of carriers that deliver today (or yesterday) in Southern California," Lossing said. "I know of 8 different companies that can do your parcel delivery, not including UPS, USPS, FedEx or Amazon Shipping. The market is too fragmented for all of them to be individually successful. We will continue to see exits or consolidation in the months to come." Recommended Reading Delivery provider Pandion closing Sign in to access your portfolio
Yahoo
11-07-2025
- Business
- Yahoo
FedEx's 2025 peak season surcharges higher than last year
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 announced 2025 peak season surcharges Tuesday that come at a higher rate than last year's holiday fees. The added levies begin Sept. 29 for packages that require additional handling, are oversized or unauthorized. On Oct. 27, three more fees – two of which FedEx introduced last year – covering various standard and expedited services will take effect. The carrier will also apply residential delivery charges for higher-volume shippers that see a jump in shipping activity. The amount of each holiday surcharge depends on the date, with prices peaking between Nov. 24 and Dec. 28. The added fees conclude on Jan. 18, 2026. Fee name Services affected Peak surcharge range per package Effective dates Additional Handling Surcharge U.S. Package Services, FedEx International Ground shipments $8.25 to $10.90 Sept. 29 - Jan. 18, 2026 Oversize Charge U.S. Package Services, FedEx International Ground shipments $90 to $108.50 Sept. 29 - Jan. 18, 2026 Ground Unauthorized Package Charge FedEx Ground, FedEx Home Delivery and FedEx International Ground shipments $490 to $545 Sept. 29 - Jan. 18, 2026 Demand Surcharge FedEx First Overnight, Priority Overnight, Standard Overnight, 2Day, 2Day A.M., Express Saver (excluding One Rate packages) $1.05 to $2.10 Oct. 27 - Jan. 18, 2026 Demand Surcharge FedEx Ground residential shipments, FedEx Home Delivery residential shipments $0.40 to $0.65 Oct. 27 - Jan. 18, 2026 Demand Surcharge FedEx Ground Economy Package Services $2.20 to $3.55 Oct. 27 - Jan. 18, 2026 Demand — Residential Delivery Charge* Ground, Home Delivery, First Overnight, Priority Overnight, Standard Overnight, 2Day, 2Day A.M., Express Saver (excluding One Rate packages) $1.55 to $8.75 Oct. 27 - Jan. 18, 2026 *Applies to enterprise-level customers who ship more than 20,000 residential and Ground Economy packages, with the price based on how much their volume deviates from their 'baseline' shipping activity. FedEx said it implements demand surcharges in times when capacity is squeezed and operating costs jump due to elevated volume, which is often the case throughout the holidays. For instance, FedEx picked up nearly 24 million packages on Cyber Monday 2024, 70% more than the average day, EVP and Chief Customer Officer Brie Carere said on a March earnings call. The additional fees could pressure shippers' bottom lines during the holiday shopping season. Actions FedEx customers can take include securing demand surcharge discounts or waivers, weighing the cost impact of the fees with no changes and modeling volume transition scenarios to other carriers, LPF Spend Management founder Nate Skiver said in a LinkedIn post on Wednesday. UPS has also levied peak season surcharges for years. As of Thursday morning, the company hasn't made an announcement on 2025 holiday fees. Recommended Reading FedEx bumps up fuel surcharge rates
Yahoo
10-07-2025
- Business
- Yahoo
US to levy 50% copper tariffs Aug. 1
This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. The U.S. will install a 50% tariff on copper imports starting Aug. 1, President Donald Trump said on Truth Social Wednesday. Trump said he made the decision to install the copper levies after receiving a national security assessment. The president first teased the new tariffs at a cabinet meeting earlier this week where he also suggested tariffs on pharmaceuticals would be coming 'very soon.' Earlier this year, Trump ordered a Section 232 investigation into copper imports. The probe called for the Secretary of Commerce to review domestic demand and production of copper and the impact of importing the metal. It also called for an assessment of 'whether additional measures, including tariffs or quotas, are necessary to protect national security.' Similar Section 232 investigations have served as precursors to U.S. tariffs, such as the 50% duties currently being levied on steel imports by the Trump administration. The customs value in dollars of U.S. copper imports in 2024 by country. Chile and Canada were the top exporters of copper to the U.S. last year, supplying more than $10 billion combined, per data from the U.S. International Trade Commission compiled by Supply Chain Dive. 'Implication: Copper tariffs will represent yet another source of cost-push inflation due to higher prices for imported metals,' said Jason Miller, interim chairperson of the department of supply chain management at Michigan State University, in a LinkedIn post Tuesday. Recommended Reading Trump's tariffs: Tracking the status of international trade actions Sign in to access your portfolio
Yahoo
02-07-2025
- Automotive
- Yahoo
FedEx establishes automotive vertical in B2B shipping push
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 created an automotive vertical within its organization as part of its efforts to expand its business-to-business customer base and revenue, EVP and Chief Customer Officer Brie Carere said on a June 24 earnings call. The vertical features a dedicated leadership team and is "off to a strong start," Carere said. She noted that FedEx landed a spot on General Motors' 2025 Supplier of the Year list for the 21st year in a row. "Our focus for fiscal year '26 will be growing within the $18 billion high-margin segment of the North American automotive market, a subsector focused on premium services that supports automotive supply chain," Carere said. FedEx is looking to be a logistics partner for more automotive companies, as auto shipments can be more profitable on a per-unit basis than retail or e-commerce deliveries. The company's pursuit comes as the auto industry faces a range of supply chain challenges, including fluctuating tariff and trade policies. FedEx is up for the task of helping all 3 million of its shippers, automotive or otherwise, adapt their businesses to tariff changes, President and CEO Raj Subramaniam said. He noted that FedEx can flex its global capacity to meet evolving demand trends, as seen in May when the company reduced its Asia-to-Americas air cargo capacity. "This uniquely positions us to be a valuable partner to our customers as they navigate shifting demand trends, evaluate the impact of tariffs on their businesses and adjust their supply chains accordingly," Subramaniam said. FedEx is not only prioritizing growth among auto shippers. The carrier is also seeking more volume from healthcare companies, small and medium-sized businesses, shippers in Europe and airfreight customers. Carere said FedEx exited fiscal year 2025, which ended May 31, with $9 billion in healthcare-related revenue as it tries to catch rival UPS in the category. FedEx achieved a healthcare milestone in Q4 by landing a Center of Excellence for Independent Validators in Pharmaceutical Logistics certification for its hubs and ramps, the CCO added. "As we look to further penetrate the high-margin health care segment, I am confident this achievement will unlock even more opportunity for us," Carere said. Recommended Reading FedEx targets growth in 4 customer segments 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
