Ground Delivery

Logistics Management Group News Editor Jeff Berman recently caught up with DHL Express U.S. CEO Greg Hewitt to discuss various topics, including: the 2023 Peak Season; the freight economy; and variuous logistics trends and themes. Their conversation is below. 

The new edition of the TD Cowen/AFS Freight Index, which was recently released by New York-based investment firm Cowen Inc. and Shreveport, La.-based 3PL and freight audit and payment company AFS Logistics LLC, highlighted mixed readings, as well as expectations, for truckload, less-than-truckload (LTL), and parcel activity, from the third quarter to the fourth quarter.

This data is based on millions of packages shipped via UPS, FedEx, and USPS.

The company said that in order to provide its customers with the best possible service during this challenging time, these surcharge increases are being implemented

Quarterly revenue—$22.9 billion—headed up 27% annually, and adjusted earnings per share—at $2.77—climbed 141% annually and was nearly a full dollar ahead of Wall Street expectations, at $1.72. Consolidated quarterly operating profit increased 158%, to $2.8 billion.

With Peak Season top of mind for many supply chain stakeholders this time of year, it comes as no surprise that a lot of attention gets paid to how the parcel duopoly of UPS and FedEx approaches things. And that comes with good reason, considering how interconnected they each are to the many moving parts of the holiday-, or peak-focused holiday season rush.

When FedEx announced last week that it plans to launch residential delivery seven days a week for most of the United States, effective January 2020 in an effort to “further serve the fast-growing e-commerce market,” it was viewed as big news, and that very much remains the case just a few days later. It is hard not to see it any other way, it seems, given that the e-commerce clearly continues to take a lasting hold on how we shop, coupled...

When it comes to pricing changes, transportation and logistics bellwethers are usually on the same page. And that was again made clear with changes each company made for additional handling charges on ground packages.