Express Parcel

Quarterly revenue, at $23.5 billion, increased 7% annually, and operating income, at $1.38 billion, was up 31%. Earnings per share, at $4.82, beat Wall Street expectations, at $4.02.

With the existing contract between global e-commerce retailer Amazon and the United States Postal Service set to expire in October 2026, media reports published yesterday indicated that there could be some shifts coming in that relationship.

Quarterly consolidated revenue, at $21.4 billion, fell 3.7% annually, and basic earnings per share, at $1.74 (topped Wall Street estimates of $1.29), fell $0.24, or 13.4%, annually. Total operating profit, at $1.8 billion, was off 9.1% annually. 

UPS said that it is installing air conditioning in 5,000 of its existing delivery vehicles in the hottest regions across the country and also testing air conditioning in the cargo area of its package cars.

Q3 Freight Index: Carriers Fight Margin Pressure as Industry Faces Longest Downcycle in Years AFS and TD Cowen highlight freight market complexity, with historical models and economic shifts shaping short-term forecasts.

Effective today, August 29, the de minimis exemption, which allows shipments under $800 sent to the United States to not be subject to tariffs, officially will be removed. That was the edict delivered in a White House executive order in late July.

Entitled “Eye on the Last Mile,” the report is based on feedback from more than 200 United States-based supply chain and logistics leaders.

Third quarter fiscal year 2025 earnings issued this week by the United States Postal Service (USPS) saw a steeper net loss, at $3.1 billion, than the $2.5 billion reported a year ago, for the quarter.

The Teamsters said earlier today that UPS is preparing to roll out later this month what it called “an illegal plan” to buy out full-time Teamsters-represented UPS employees, labeling it a corporate scheme which directly violated its contract with UPS that represents 340,000 delivery workers.

FedEx said that this new pricing and rating structure is for parcel pickups in the United States and Canada. And it added that this new rating structure will charge weekly for regularly scheduled (U.S. and Canada) and automated pickups (U.S. only), regardless of service type—whether it is FedEx expedited or standard service—with on-call pickups in the U.S. charged per stop.

The new four-year contract includes raises, better pensions, mental health benefits, and protections around AI and automation.

This move is expected to have a major impact on online retailers like Shein and Temu, which rely on sending goods directly to U.S. shoppers without paying tariffs.

A report recently issued by ShipMatrix, a subsidiary of Warrendale, Pa.-based SJ Consulting, points to an increasing shift in the parcel marketplace that is having an impact on the parcel duopoly of FedEx and UPS.

During this podcast Shipware's Paul Yaussy and Adi Karamcheti addressed various topics, including: the current state of today's parcel marketplace; the current state of parcel rates and pricing; parcel Peak Season prospects; and how tariffs are impacting the market, among others. 

According to a new FedEx report, more than 80% of consumers prioritize free shipping, and 76% say it influences where they shop. But while customers expect it, free shipping is anything but free. Someone is footing the bill. The question is: who?