United Parcel Service Inc. reported 10% growth in quarterly income, helped by efforts to boost efficiency and lessen its costs delivering online orders to U.S. homes.
Residential deliveries, up more than 6% in the quarter, are inherently more costly than shipments to businesses because the packages tend to require more driving and time. UPS has invested in software to improve delivery routes, added package pickup locations to pool deliveries, and is doing more so-called last-mile deliveries instead of paying the U.S. Postal Service for that service.
The company said it expects its momentum to continue, and it backed its full-year guidance. But it also said a decision by the U.S. Treasury Department regarding pension cuts may trigger a charge of up to $3.8 billion this year that would push earnings to the lower end of its forecast range.
WASHINGTON – U.S. Senator Claire McCaskill today questioned the U.S. Postal Service’s pricing for its “last mile” of delivery in rural areas, and why she believes it may be losing money by under-charging competitors such as UPS and Fedex to carry mail to those areas.
“I have been on a harangue about giving deals to our competitors,” said McCaskill, a former Missouri State Auditor and senior member of the Senate Homeland Security and Governmental Affairs Committee, which has jurisdiction over the Postal Service. “…We are giving a really good deal to our competitors. I’ve never seen another business entity who says, because we are so starving for volume, we’re going to take the most expensive part of our architecture, which is the last mile, and we’re going to give our competitors a deal on that last mile. And I have yet to have anyone give me the analysis that shows me that they have, in fact, at the Postal Service, considered what price they’re giving to UPS and FedEx for that last mile of delivery as it relates to our costs.” Continue reading →
The union representing United Parcel Service Inc. pilots on Tuesday said it thinks it is nearing an impasse in contract negotiations with the delivery giant after nearly five years.
Federal mediators are expected to decide whether the two parties have reached a stalemate after UPS presents its closing positions for its final proposal on new contract terms scheduled for next week, according to the Independent Pilots Association. If mediators find the two groups are at an impasse, they could release the parties from mediation to start a 30-day cooling-off period before a lockout or strike could take place, the union said.
The Mail Handlers Union has announced that the USPS has dropped plans to outsource the handling of non-machinable parcels (NMOs). The USPS had contracted with United Parcel Service to perform originating and destinating sortation of NMOs from the Des Moines and Chicago Network Distribution Centers in 2013. The USPS referred to the contract as a “pilot test”, but the union contended that the “test” violated the National Agreement, and filed a grievance. That grievance has now been withdrawn:
In a memorandum to all Local Presidents, NPMHU President Paul Hogrogian and CAD Manager T.J. Branch disseminated information relative to the NPMHU’s National-level grievance over the possible subcontracting of sorting and processing Non-Machinable Outside (NMO) parcels.
As set forth in the attached agreement, the NMP pilot test has ended; the NMO parcel operation is back to its normal operating procedures; and the Postal Service has ceased further evaluation of outsourcing for NMO parcels.
UPS forecasts holiday delivery of more than 630 million packages
Black Friday-to-New Year’s Eve deliveries up more than 10 percent from 2014
Scheduled peak delivery day of about 36 million on Tuesday, Dec. 22, doubling typical daily delivery volume
UPS (NYSE:UPS) expects to deliver more than 630 million packages between Black Friday and New Year’s Eve, an increase of more than 10 percent over holiday deliveries last year. This UPS peak holiday shipping period includes an additional shipping day before Christmas versus 2014.
The company plans to deliver about 36 million packages on Tuesday, Dec. 22, up from 35 million last year, and double the normal daily average of 18 million deliveries. Consumers’ preference for ecommerce, coupled with the industry’s most often selected delivery solutions have driven UPS’s peak volume to all-time highs. The company tallied about 17 million deliveries on its peak delivery day just 10 years ago.
Since Christmas falls on Friday this year UPS plans for high daily residential delivery volume throughout the week. The company expects to make a record number of deliveries to residential addresses during the holiday period, up to 60 percent of all package deliveries, versus an average of 45 percent on a full-year basis. Continue reading →
LOUISVILLE, Ky., Oct. 22, 2015 /PRNewswire-USNewswire/ — In an unqualified show of support, James Hoffa, General President and Ken Hall, General Secretary-Treasurer of the International Brotherhood of Teamsters, pledged to the Independent Pilots Association that “if a strike is necessary, we will not cross your lines, but will stand with you on them.”
This commitment from Hoffa and Hall came in a letter to IPA President, Captain Robert Travis. “The International Brotherhood of Teamsters represents 250,000 workers at United Parcel Service,” said Captain Travis. “This unflinching support from the Teamsters on the eve of our strike vote is exactly what UPS needs to see – we all stand together in support of a new pilot contract.”
In their letter, Hoffa and Hall also said, “UPS has continued to stall and drag its feet in completing an agreement with you and your hardworking members. Four years to negotiate a collective bargaining agreement is simply unacceptable,” and that, “the Teamsters Union will stand with you in whatever decisions your members make.”
The IPA will announce the result of its strike authorization vote tomorrow Friday, October 23 at approximately 10:30 a.m. EDT. If approved, the five-pilot IPA Executive Board will have the authority to formally request a release from federally mediated negotiations with UPS, and the discretion to conduct a strike once mediation is concluded.
Mutual support between the IBT and the IPA during contract negotiations with UPS runs deep. “The Teamsters have not forgotten the solidarity that your members showed us in 1997, when not one single IPA member crossed our picket lines,” said Hoffa and Hall in reference to the IBT’s landmark 16-day strike of UPS.
WASHINGTON, Oct. 20, 2015 /PRNewswire/ — Wu, Grohovsky & Whipple, PLLC (“WGW”), a boutique law firm regularly representingQui Tam whistleblowers in large federal and state False Claims Act cases, today announces that international shipper United Parcel Service (“UPS”) has agreed to pay in excess of $4.2 million dollars to 14 states, the District of Columbia, New York City and Chicagoto resolve allegations that it routinely falsified delivery records regarding state and city government packages for years. Earlier this year, UPS settled similar allegations with the federal government for $25 million and the state of New Jersey for $740,000.
The case was brought by former UPS employee and WGW client, Robert Fulk, under the federal false claims act and the false claims acts of nineteen states, the District of Columbia, N.Y.C. and Chicago. This second settlement follows months of negotiations between a coalition of the states and cities led by New York Assistant Attorney General Adam Pollock, lawyers from WGW and UPS.
In the settlement approved today, UPS will pay the states and cities as follows:
District of Columbia
New York and NYC
Close to 83% of that money will be returned to state and city taxpayers.
“This settlement is a result of the successful public/private partnership anticipated by the federal and state false claims acts in identifying and stopping fraud,” said Julie Grohovsky, a partner at WGW.
“Because of the efforts of our client, Mr. Fulk, millions of dollars in wrongfully obtained tax payer money will be returned to the federal, state and local government,”Shanlon Wu of WGW added.
The Qui Tam case brought by Mr. Fulk and WGW alleged that UPS fraudulently obtained payment for delivery services not actually performed through a variety of actions, including entering false delivery times into its tracking system to make it appear that packages were delivered on time to government customers, when they were not. UPS also misrepresented to its government customers that fake or erroneous reasons caused delays in service, including false reports that government customers had requested later deliveries when they had not. These fraudulent actions allowed UPS to avoid paying millions of dollars in service refunds for late deliveries to federal and state governments.
This release is in reference to case number 1:11-cv-890 (CMH/TCB) in the U.S. District Court for the Eastern District of Virginia.
United Parcel Service Inc. will charge more to ship larger and heavier packages this holiday season and plans to charge a fee for packages that are billed to a third party as it moves to recoup some of the higher costs of handling the larger shipments that are causing delivery logjams.
On Thursday, UPS said as of Nov. 2 it will charge an additional $52.50 for those larger and heavier packages and raise fuel surcharges to 5.25%, from 4.75%, for ground shipping and to 4.50%, from 3%, for air and international shipping.Currently, UPS charges $57.50 for oversize packages.
Offers earlier delivery guarantees for more than 41,000 new postal codes
Largest one-time expansion of the service in its history
UPS Worldwide Express service is available in 65 countries that comprise 91% of global GDP
UPS (NYSE:UPS) is expanding its UPS Worldwide Express™ service to more than 41,000 new postal codes around the world, creating earlier guaranteed-delivery options for customers that previously had only end-of-day guarantees. The company already delivers more packages internationally and offers more guaranteed small-package delivery options than any other integrated logistics company.
The service is part of the UPS Express® portfolio, which offers three guaranteed time-of-day delivery options that include customs clearance. The UPS Express portfolio features:
UPS Express Plus for early-morning delivery to 27 countries
UPS Express for midday delivery to 65 countries
UPS Express Saver® for end-of-day delivery to 220 countries and territories
Starting Oct. 19, UPS Worldwide Express service will be available in all of the new postal codes. This is the largest one-time expansion of the service in its history.
UPS Worldwide Express service offers guaranteed delivery on the next possible business day by 10:30 a.m., noon or 2:00 p.m. depending on the destination. Individuals and companies of all sizes can use the service, but it is particularly beneficial to those with time-sensitive international shipments. UPS Worldwide Express service is available in 65 countries that comprise 91% of the global gross domestic product. In Latin America, the countries where UPS Worldwide Express will be expanded in include, Argentina, Brazil, Chile and Mexico. Continue reading →