Network shake\u2011up raises worries about holiday parcels and could inch national shipping prices higher<\/p>\n\n\n\n
United Parcel Service will cut about 2\u202f% of its global workforce and close 73 U.S. facilities after trimming the volume it handles for Amazon by more than half. Executives say the drastic move, announced during last quarter\u2019s earnings call, will make the network leaner and more profitable\u2014yet consumers may feel the pinch as soon as fall.<\/p>\n\n\n\n
CEO Carol\u202fTom\u00e9 called Amazon \u201cour largest customer, but not our most profitable,\u201d noting that low\u2011margin e\u2011commerce parcels have strained UPS capacity for years. By stepping away from roughly one\u2011tenth of its revenue, the carrier expects to rely less on manual labor and invest heavily in automation. Chief financial officer Brian\u202fDykes added that half the closures sit east of the Mississippi, where overlapping routes will be consolidated. <\/p>\n\n\n\n
Still, 20,000 pink slips and dozens of darkened buildings leave a human toll the Teamsters union vows to contest. \u201cIf corporate cuts threaten union jobs, we\u2019re ready for a fight,\u201d union president Sean\u202fO\u2019Brien warned.<\/p>\n\n\n\n
Fewer local sort centers mean parcels will travel farther between remaining hubs, and analysts caution that one\u2011 to two\u2011day ground promises could slip in rural zones. Remember the 2019 holiday backups? Similar bottlenecks could reappear\u2014especially if new tariffs or supply\u2011chain shocks spur last\u2011minute online buying. <\/p>\n\n\n\n
Curious whether your ZIP code is on the watch list? UPS has not released a map, but independent consultants point to mid\u2011size cities losing secondary depots as the most vulnerable.<\/p>\n\n\n\n
What everyday shippers and small businesses can do to cushion likely price increases this year? First, compare carrier rate sheets now rather than in November. Diversifying with USPS Ground Advantage or regional players like OnTrac can keep margins intact. Second, batch orders: multi\u2011item parcels usually cost less per unit than single\u2011item shipments. <\/p>\n\n\n\n
Finally\u2014have you considered in\u2011store pickup incentives? A small coupon for local pickup can slash fulfillment costs and build foot traffic.<\/p>\n\n\n\n