Parcel

The resumption marks a return to normal for cross-border deliveries.

Combined on-time performance (OTP) for all domestic parcel services for the three carriers using end-of-day delivery, for express and an extra day, hit high levels, respectively, with FedEx at 98.7%, UPS at 98.9%, and the USPS at 98.7%, reported ShipMatrix.

As of January 1, USPS said it will no longer offer discounted rates through negotiated service agreements (NSA) for packages entered by consolidators at Post Office delivery units.

The strike halts mail and parcel deliveries nationwide just as the holiday season approaches.

Entitled “Bridging the e-Commerce Divide: Meeting Consumer Demands with Merchant Offerings,” a key takeaway cited by FedEx observed how 75% of consumers prioritize free shipping over fast shipping, which it said represents a major consumer behavior trend, as well as the “growing importance of free shipping in the online shopping experience.”

In this podcast, Moon discussed the impact of the short Peak Season on deliveries and order fulfillment; big and bulky deliveries; and same-day delivery trends, among other topics.

The new edition of the TD Cowen/AFS Freight Index, which was recently released by New York-based investment firm TD Cowen Inc. and Shreveport, La.-based 3PL and freight audit and payment company AFS Logistics LLC, was somewhat mixed, with what it called unprecedented parcel pricing, as well as more established trends for truckload and less-than-truckload (LTL) rates.

While inflation may be on the decline, that certainly hasn’t stopped consumers from looking for deals. That sentiment is also true when looking at how parcel services providers are seeing more customers opting for cost-effective ground delivery options—as opposed to more expensive express delivery options.

Trade downs to more cost-effective services were a key factor in declining fiscal first quarter earnings, Memphis-based global freight transportation and logistics services provider FedEx reported late yesterday. Quarterly revenue, at $21.6 billion, was down 0.5% annually, and operating income, at $1.21 billion, was off 24%. Earnings per share, at $3.60, were down from $4.55 a year ago and fell short of Wall Street expectations of $4.64.

The United States Postal Service (USPS) said this week it is taking steps to implement what it called a new strategic approach, regarding its contracts with package consolidator companies, which they define as those who consolidate large volumes of packages for entry into various points of the USPS network.

The company said that these new enhancements mesh what it called seamless final mile capabilities through a strategic integration with Uber Direct, modular TMS functionality, advanced Insights AI features, and flexible procurement software.  

This partnership focuses on improving last-mile delivery, providing speed and reliability for customers.

The new fees, starting in October, will apply to various shipping and fulfillment services during the peak season.

The company said this expansion, which will reach “beyond Chicagoland” and Illinois into the greater Midwest, through Madison and Milwaukee, Wisc., Minneapolis and St. Paul, Minn. and St. Louis, Missouri.

A new survey issued by New York-based AlixPartners, entitled “2024 U.S. Consumer & Executive Home Delivery Survey,”was conducted in the second quarter, receiving feedback from 1,100 U.S. consumers aged 18 or above and 110 North American-based transportation, logistics, and supply chain executives at companies with more than $100 million in annual revenue.