UPS to raise rates 4.9% after holidays

From United Parcel Service:

Effective December 26, 2016, the UPS U.S. Ground service Daily rate will increase by an average net 4.9 percent. Daily rates for UPS U.S. Air and International services will increase an average net 4.9 percent. UPS Air Freight rates within and between the U.S., Canada and Puerto Rico, will increase an average net 4.9 percent, also effective December 26, 2016. Further, UPS Freight announced an average net 4.9 percent general rate increase effective September 19, 2016.

ups-logoUPS continues to make investments in the speed, scope and coverage of our transportation network. Rate increases will support ongoing expansion and capabilities enhancements, while UPS strives to maintain the high service levels customers expect.

For additional information and to review the announced rates visit www.ups.com/rates. Information about other 2017 UPS rate changes and additional charges will be made available on the site on November 18, 2016.

Source: UPS Announces U.S. Rate Changes

UPS Reports Strong 2Q Results

UPS (NYSE:UPS) today announced second-quarter 2016 diluted earnings per share of $1.43, a 6% increase over the same period last year.  International operating profit increased 11% to $613 million, representing the sixth consecutive quarter of double-digit growth.

Total revenue was $14.6 billion, up 3.8% over the same quarter last year.  Revenue growth was reduced by changes in fuel surcharges and currency exchange rates.  On a currency-neutral basis, revenue increased 4.0%.  Lower fuel surcharge rates reduced revenue growth by approximately 120 basis points. Continue reading

UPS ready for more volume in case of Canada Post work stoppage

From United Parcel Service:

UPS (NYSE:UPS) If you are a business owner, an enterprise, an online shopper or planning for a special occasion, you will want to have a backup plan for your shipping needs starting  July 2, 2016. Reports of a potential labour dispute at Canada Post could impact shipping.

A news report indicates Canada Post is warning its largest customers to prepare for a work-stoppage-related service disruption. The time to plan ahead is now. UPS Canada is prepared to take on additional packages through its UPS Access Point ® Network. With almost 900 locations across Canada, businesses and consumers alike have a convenient and simple solution to pickup and drop off pre-labeled UPS shipments at a rate that offers in province, next day delivery, comparable to the published Xpresspost rate in many areas.

ups-logo“UPS Access Point locations are situated in convenient places with evening and weekend hours to fit the busy Canadian lifestyle,” said Christoph Atz, president, UPS Canada. “We are ready for additional volume, and the UPS Access Point Network is robust and prepared to serve Canadians.”

Consumers and businesses across the country use the UPS Access Point Network. For example, Canadian company GoodFood, relies on a smooth delivery to maintain its customer service standards. “The UPS Access Point Network has benefitted our customers who need flexible solutions to pickup their packages when they are not at home,” said Jonathan Ferrari, CEO, GoodFood. “We are a grocery delivery service, so we need to ensure our packages are delivered on time and the ingredients stay fresh.”

The UPS Access Point Network provides an easy solution during this critical time when routines may be disrupted and consumers are uncertain about the status of potential orders.  A new simplified shipping tool is available at ups.com/readynow. The tool helps process shipments and locate a nearby UPS Access Point location to drop off packages.  UPS notifies the consumer when the package is at the location and is ready to pickup. The alert also has the location’s address and hours.

By the end of the 2016, UPS expects to have more 27,000 UPS Access Point locations around the world.

UPS Enables Users To Track Location Of Their Delivery On Live Map

From United Parcel Service:

Atlanta, GA

Follow My Delivery enhancement gives customers more visibility

ups-logoUPS today announced the launch of Follow My Delivery, a new enhancement to the UPS My Choice® service that offers unprecedented flexibility, convenience and visibility on the day of delivery. More than 22 million UPS My Choice members in the U.S. utilizing their mobile devices or computers can now monitor the progress of their most urgent UPS® Air and UPS Worldwide Express® packages on a live map. The new Follow My Delivery map feature enables delivery recipients to see a detailed view of where their package is located when it’s out for delivery.  UPS plans to expand the Follow My Delivery feature to more services in the future.

Continue reading

UPS takes back some last mile deliveries from USPS as earnings rise

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.

BN-NI459_0331_c_J_20160331084616Residential 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.

Read more: UPS Earnings Rise as Deliveries Increase – WSJ

McCaskill: Is USPS undercharging FedEx and UPS?

 

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

UPS Pilots Union Says Sides Near Impasse

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.

ups-logoFederal 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.

Source: UPS Pilots Union Says Sides Near Impasse

USPS drops plan to have UPS handle non-machinable parcels

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:

NPMHU_logoIn 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.

Read the complete memorandum and grievance resolution  (pdf)

Source: National Level Grievance Settlement Resolves NMO Outsourcing Issue – National Postal Mail Handlers Union

UPS To Deliver Record Holiday Shipments

Atlanta, GA

  • 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.

ups-logoThe 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