CNBC’s Post

Shares of United Parcel Service closed down 14% Thursday after the company issued weak revenue guidance for the year and said it planned to cut deliveries for Amazon, its largest customer, by more than half. The shipping giant said in its fourth-quarter earnings report that it “reached an agreement in principle with its largest customer to lower its volume by more than 50% by the second half of 2026.” https://lnkd.in/enFTEHUe

UPS to slash Amazon deliveries The United Parcel Service experienced a significant drop in share price following the announcement of a plan to reduce deliveries for #Amazon, its largest corporate client, by over 50% within the next two years. The shipping company stated that this reduction is part of a broader efficiency initiative to boost operating margins and enable #UPS to be more "profitable, agile, and distinct." Additionally, UPS's revenue forecast of $89 billion for this year fell short of #WallStreet predictions. #logistics #supplychain #customerexperience #shipping #ecommerce

UPS is pulling back on Amazon deliveries—what does this signal for the future of logistics? UPS just announced plans to slash its Amazon volume, and the market didn’t take it well. Shares dropped sharply after weak guidance. The reason? UPS is shifting focus to higher-margin deliveries instead of chasing volume. This raises some big questions: - Will other carriers follow suit and prioritize profitability over scale? - How will Amazon adapt—double down on its own logistics network or lean on regional carriers? - And most importantly, what does this mean for the future of e-commerce fulfillment? - Is this a smart long-term move by UPS, or a risky bet in an ultra-competitive space? #UPS #Amazon #Logistics #Ecommerce

I'm curious to see how UPS Local Stores will be impacted by this change. I recently spoke with a local store owner who mentioned that 85-90% of their monthly volume consists of Amazon return packages! As for Amazon, it will be interesting to see how they handle the influx of returned products, scale their fleet, and still maintain fast delivery for Prime customers. Big shifts ahead in the logistics world #AmazonReturns #UPS #EcommerceLogistics #SupplyChain #3PL #Fulfillment

The wind is blowing in different directions for Amazon and FedEx. Supply Chain by Amazon say its sellers have reported an average increase in sales conversions of 20%, thanks to faster deliveries. Amazon is investing $2.1bn in its Delivery Service Partner programme which supports small business owners that offer delivery. In contrast, FedEx is grappling with less likeable numbers. Year-on-year revenue for Q1 2025 for the whole company edged down by 4.6%, whilst operating profit was down 38%. The cost of the last mile is generally painful, which is why Amazon has to bank roll its small business partners, but also why Out of Home Delivery methods like lockers and parcel shops are becoming so popular. Ti’s latest free whitepaper takes a look at these expanding PUDO (Pick up, Drop off) networks, and contains analysis of key players within the market. Read all the latest logistics analysis and download our latest free whitepaper in Wednesday's edition of #LogisticsBriefing Kirsty Adams https://lnkd.in/egK-UaGm

Yesterday morning I used the word PUDO for the first time. Pick Up, Drop Off. Now we know. 📦 Ti Insight has just published a free white paper which includes analysis of the leading parcel lockers in Europe and key players within the market (these are PUDO networks). The paper evaluates parcel operations, trends, and the key locations being adopted by leading players to optimise their final mile strategy. Find the download link below in this week's Logistics Briefing. Some interesting stories in there too about Supply Chain by Amazon and FedEx' results. #PUDO #delivery #logistics #parcellockers #globalsupplychains Jess Dando Sarah Smith Nia Hudson

Who's splitting up with who? UPS and Amazon have been partners for nearly 30 years, but cracks in the relationship appeared well before the announcement that UPS plans to scale back on Amazon deliveries by more than half. Cracks in the partnership are getting bigger. While Amazon has relationships with UPS, FedEx and the USPS, he reality is that the ecommerce giant has been building out its own shipping and logistics network for years. Most notably, Amazon Air has it's own fleet of cargo places. And, no doubt you've heard about its last mile drone delivery service, which is likely to get off the ground later the year. We may love logistics, but UPS is looking for more. Amazon accounted for 11.8 percent of UPS’s total revenue, or $10.7 billion, but its low profit margins have been a drag on the company’s overall profitability. Investors certainly haven't been happy as revenues sink. That explains why the Brown has focused on higher margin verticals including healthcare, small business, and international B2B. It's me, not you. Well, the downsizing and what's looking like an inevitable split won't help UPS financially in the near term. But, the near term hurt may be the best in the long run https://lnkd.in/g8P7afUx #ups #amazon #logistics #shipping #transportation #supplychain

Jan 30 (Reuters) - United Parcel Service (UPS.N), opens new tab on Thursday forecast downbeat 2025 revenue as it cuts back deliveries for its largest customer, Amazon.com (AMZN.O), opens new tab, and grapples with stubbornly soft demand for lucrative overnight service and commercial shipments. Shares in the world's largest parcel delivery firm were down about 15% in early trading after the company said it had reached an agreement to cut transported Amazon volumes by more than 50% by the second half of 2026.

🚚 Big Changes: UPS Cuts Amazon Deliveries by 50% 🚚 UPS is slashing Amazon deliveries by more than half by 2026 as part of its strategy to focus on higher-margin business like B2B, healthcare, and small businesses. CEO Carol B. Tomé says Amazon’s volume isn’t profitable enough, and UPS is shifting toward more sustainable growth. With Amazon’s logistics empire growing, this shakeup highlights the shifting balance in last-mile delivery. 💬 Smart strategy or risky move? What’s your take? #Logistics #UPS #Amazon #LastMile #eCommerce #ParcelDelivery

The USPS wants to end Parcel Select DDU discounts. But would those changes apply to Amazon? Not a chance. DeJoy might be delusional. [another topic for another day] But he’s not stupid. A rate increase of this magnitude would accelerate Amazon’s insourcing. And billions in revenue and margin contribution would disappear. [maybe inevitable, but not so quickly] Consider these AMZN stats from 2019: [from leaked USPS docs in 2020] -Total revenue: $3.9B -PS revenue: $2.6B -PS margin contribution: $1.3B -PS volume: 1.15B -PS % DDU: 99.4% -8.6K undiscounted PS zips [75% less than workshare partners] In 2019-2020, the USPS considered massive PS rate increases. And they expected the impact would be: 1. Amazon would insource all volume in <1 year 2. UPS would insource volume into Ground network 3. FedEx would continue on [then] current path 4. Consolidator partners would become uncompetitive [citing inability to find replacement delivery partners] But apparently, PS rate increases are back on the table. At least for certain workshare partners. But likely not for Amazon. #retailing #ecommerce #logistics #bitethehandthatfeedsyou