Dear Teamsters: Negotiate hard with UPS at the table, not the picket line
Only UPS and Teamster rivals benefit when the bargaining leaves the table and becomes a verbal war, Jindel says.
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Unlike freight shipping, which moves goods in large quantities (whole truckloads or shipping containers, for example), parcel shipping moves individual goods essentially one at a time (usually by truck or plane). While both focus on the movement of goods, transportation methods, level of service, and cost can be very different between the two services. Freight is almost exclusively used by commercial shippers, while small- to medium-sized retail shippers usually use parcel freight.
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Only UPS and Teamster rivals benefit when the bargaining leaves the table and becomes a verbal war, Jindel says.
Amazon also issues higher second-quarter guidance.
A weak U.S. consumer and a continued Asian downturn weigh on UPS. The macro environment is expected to remain challenged, CEO Carol Tomé says.
Parcel giant weighed down by soft US retail sales, continued slowdown in Asia
Amazon drivers and dispatchers in Palmdale, California, have won recognition to join Teamsters Local 396 in Los Angeles.
Despite what may be a lot of available parcels, Amazon may have better things to do with its capital than to chase UPS customers.
There is a lot more competition waiting to take a UPS parcel if workers go on strike, consultant Satish Jindel says.
As negotiations get underway between UPS and the Teamsters, here are key considerations for shippers navigating a period of uncertainty.
FedEx celebrates its golden anniversary of operations with its most intense few years in decades ahead of it.
The Teamsters meet with UPS on Monday in Washington to discuss progress on supplemental agreements as main negotiations begin.