Worried about UPS strike affecting transportation: 1 million packages are transferred to FedEx for transportation every day!

It is learned that according to consulting firm Ship Matrix Inc, UPS's average daily domestic transaction volume in the United States has lost about 5% due to shippers' concerns that the Truck Drivers Union may go on strike and affect transportation. These packages are mainly transferred to FedEx. Rival FedEx can be said to have made a steady profit from this UPS strike.

ShipMatrix, which compiles extensive data on industry trends and issues, said UPS was diverting about 1 million packages a day to FedEx in the days and weeks before the tentative agreement was announced last Tuesday. ShipMatrix said that was based on an average of 18.6 million domestic packages UPS handled per day as of the end of the first quarter.

Satish Jindel, president of ShipMatrix, said about half of forwarded packages will stay with FedEx because they offer lower prices than UPS charges.

Jindel said that statistically speaking, less express delivery volume is shifting from UPS to other logistics providers such as the U.S. Postal Service, regional carriers and package consolidators.

UPS's 340,000 rank-and-file employees now have three weeks to review and approve or reject the contract by a majority vote. The vote ends on August 22.

Editor ✎Estella/

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