I’m Jay Kent, managing director of SLB Performance, a consulting firm that helps companies reduce supply chain costs, implement BI tools, and improve in-stock and customer service. After 25 years of leading some of the most complex supply chains in the industry, I began advising companies in multiple industries and verticals. It’s important to understand the market to mitigate costs and improve efficiencies. So, twice a month, I’ll share parcel news and thoughts. Be sure to hit the subscribe button to receive the latest newsletter in your LinkedIn notifications.
It’s a special issue of the Parcel Notes this week as I was at TPM last week attending various sessions and lots of networking. There’s a growing sense of risk in supply chains and the need to be able to be resilient and flex quickly.
I also heard from many attendees about invoice issues. Regardless of transportation mode, there’s always the need to ensure the carrier is billing correctly. As an example, a case study on Wednesday demonstrated how BlueCargo saved GE Appliances from excessive detention and demurge fees. BlueCargo is a technology company but how do you know if it, or other similar companies, are the right partner for you? That’s where I can help – identifying and recommending such solutions and other options – regardless of transportation mode.
So, on to the parcel news…..
- Are FedEx Express pilots heading for a strike? We’ll see as the Air Line Pilots Association, International(ALPA)which represents about 5,800 pilots at FedEx Expressasked the National Mediation Board to be officially released from mediation for the purpose of being able to go on strike against the company to achieve a new contract.
- UPS took delivery of a new varietyof low-emission freight vehicle from Kenworth which completed a T680 daycab with a 15-liter natural gas engine. The class-8, long haul tractor will be the first of several such trucks that Kenworth is delivering to UPS. While UPS purchased their first natural gas trucks from Kenworth 15 years ago, the new model boasts an even cleaner engine.
The US Post Office
- A study found that the U.S. Postal Service (USPS) failed to track crash incidents. Long-haul trucking contractors were in crashes that killed at least 89 people from late 2018 through 2022. The postal service also sidestepped its own rules to allow unvetted drivers to haul nearly 250,000 loads of mail according to a WSJ story(Subscription may be required).
- As USPS institutes network reforms, mail delivery hits a 3-year low according to the publication, Government Executive. USPS is now delivering just 83% of First-Class mail on time during the current fiscal quarter, its worst rate in three years. That is down from 86% in the first quarter and 91% in both the fourth quarter of fiscal 2023 and the same period last year.
Other Carriers & Service Providers
- Amazon collects $140 billion in annual fees from sellers. But, according to this Fortune story, the new fees are complex and expensive, and may force sellers to overhaul their businesses and “seriously consider ceding more control of their supply chain to the tech giant at a time when it is facing a government lawsuit that alleges the company is already abusing its power over these merchants.”
- Speedy deliveries continue to be considered a competitive advantage and additional fee. Walmart + members can now get deliveries as early as 6 amwith the company’s Express On-Demand Early Morning Delivery for $10 more.
- Target launches paid membership programthat includes unlimited free same-day delivery for orders over $35 in as little as one hour with no delivery fees and two free-day shipping, along with other perks.
- GEODIS announced the launch of its new multi-carrier parcel shipping solutionwhich offers direct carrier connections to customers to reduce manual uploads of rates and surcharges to optimize e-Commerce fulfillment operations.
- According to Supply Chain Dive, OnTrac is launching Saturday and Sunday delivery for the majority of its network. In a presentation at the Manifest Vegas 2024 conference, Chief Commercial Officer Josh Dinneen said OnTrac will also expand its coverage in July by launching in the Chicago metropolitan area and more of the Midwest.
Surcharges
- Effective April 8, 2024, UPS will add 82 new zip codes to its Delivery Area Surcharges, totaling just under 250,000 in population according to Shipware.
- UPS also announced that, on June 17, 2024, “the applicable zone will change for certain origin/destination ZIP code pairs.” Shipware anticipates that the updated zone charts will result in an increased percentage of longer zone shipments, which will also increase shippers’ costs. I agree 100%.
That’s it for now. Comments are always welcome. Reach out if you’d like to learn how to lower or even possibly eliminate any parcel fees. Stay tuned for the next newsletter on March 20, and don’t forget to hit the subscribe button to ensure you receive it in your LinkedIn notices.
-Jay