UPS Freight

Bill Seward, President of UPS Supply Chain Solutions, took center stage to deliver the keynote address to kick off MODEX 2024. Hosted by Katie Kirkpatrick, President and CEO of the Metro Atlanta Chamber, the discussion touched on several topics including the future trajectory of supply chains, UPS' strategic investments in technology, and Seward's personal journey from loading trucks to executive.

Figuring out how to emerge from this ongoing maelstrom will remain a challenge for shippers everywhere in 2024. With that in mind, let’s focus a few areas around the globe where extra care and diligent logistics management will need to be applied to keep operations—and budgets—in check.

In an annual tradition, LM takes a look at the top news in logistics and supply chain posted in the last year on Logistics Management. The editorial team presents the top 10 logistics stories of 2023.

United Parcel Service (UPS), celebrating a new tentative five-year labor contract covering 340,000 members at the Teamsters union, says it expects the new deal will be ratified by rank-and-file workers within two weeks.

A key theme in Atlanta-based global freight transportation and express delivery and logistics services provider UPS’s fourth quarter earnings call yesterday centered around its contract with the Teamsters, which is set to expire on July 31. On the earnings call, UPS CEO Carol Tomé made it clear where UPS is coming from, in. advance of its negotiations with the Teamsters, noting that the Teamsters have very important to the company for the better part of the last 100 years.

On its earnings call, UPS CEO Carol Tomé dug deeper into the move, explaining that UPS Freight is a capital-intensive low returning business, one that was no longer needed on a few different fronts.

Quarterly revenue, at $24.9 billion, increased 21% annually, and adjusted earnings per share, at $2.66, was up 26.1% compared to a year ago, far outpacing Wall Street expectations, at $2.10. Quarterly operating profit was up 26% to $2.87 billion, setting a new company record. And for the full-year 2020, revenue rose 14.2% to $84.6 billion, and operating profit was up 7% to $8.71 billion.

UPS is selling its UPS Freight less-than-truckload (LTL) unit to TFI International Inc., a Canadian holding company that is parent to truckload giant CFI and other transport entities, for $800 million, subject to working capital and other adjustments. The company will rebrand as “TForce Freight” under Canadian ownership.

Logistics Management’s Jeff Berman recently caught up with UPS Freight President Rich McArdle on a wide variety of topics, including LTL pricing.

The push for nationwide use of 33-foot trailer combinations is back. Currently limited to twin 28-foot trailers, companies such as UPS and FedEx would gain an estimated 18% in productivity if twin-33s were allowed nationally.

Logistics Management's Jeff Berman recently caught up with UPS Freight President Rich McArdle on a wide variety of topics, including LTL pricing, regulations, and what needs to happen to improve transportation infrastructure.

Earlier this month, UPS Freight, the less-than-truckload subsidiary of Atlanta-based transportation and logistics bellwether UPS announced general rate increases (GRI) that went into effect on February 18. The GRI, which applies to non-contractual less-than-truckload (LTL) shipments rated on the current UPS Freight 525, 560, 570 and 571 tariffs, is 5.9%.

Earlier today, Scottsdale, Arizona-based Emerge, a provider of its proprietary Private Freight Marketplace (PFM) and TMS focused on accelerating productivity and increasing visibility for supply chain stakeholders, announced it has raised $20 million in a seed round, which was led Greycroft Partners, a venture capital firm based in Los Angeles and New York, in addition to participation from other investors as well.

A new labor agreement between UPS Freight, the less-than-truckload unit of UPS, and the Teamsters Union was reached over the weekend, with UPS Freight Teamsters members approving a new contract over the weekend.

Recent developments regarding a new labor agreement between UPS Freight, the les-than-truckload unit of UPS, and the Teamsters Freight National Bargaining Committee over a new labor contract could have ramifications that potentially lead to a strike, or the semblance of one.