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Industry News

Bernstein: Amazon Flex Is No Threat To FedEx, UPS – Benzinga

Amazon.com, Inc. investors are always on the lookout for the company’s next disruptive business, and some believe it could be parcel delivery. Amazon Flex is not a major threat to United Parcel Service, Inc. and FedEx Corporation, according to Bernstein analyst David Vernon.

Amazon Flex is Amazon’s crowdsourced delivery model that could potentially challenge FedEx and UPS, but Vernon said Flex has major limitations.

“We see limited risk of full-scale diversion of volume from traditional carriers to crowdsourced models due to the constraints required to build efficient flex blocks and limitations on supply of ‘right-timed’ labor,” the analyst said in a Thursday note.

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UPS News

UNITED PARCEL SERVICE, INC. v. POSTAL REGULATORY COMMISSION – Leagle

TATEL, Circuit Judge.

The U.S. Postal Service holds congressionally authorized monopoly power over the market for some of its products, like first-class mail delivery, but for other products, like parcel post, it competes with private companies. To promote fair competition, Congress tasked the Postal Regulatory Commission with ensuring that the Postal Service sets competitive products’ prices high enough to cover all “costs attributable to [those] product[s] through reliably identified causal relationships.” 39 U.S.C. § 3631(b); see also id. § 3633(a)(2). In two 2016 orders, the Commission directed the Postal Service to include among the “costs attributable” to competitive products those costs that would disappear were the Postal Service to stop offering those products for sale. United Parcel Service, Inc., which competes with the Postal Service, petitions for review of both orders, arguing that the cost attribution methodology the Commission embraced is both inconsistent with the statute that gives the Commission its regulatory authority and arbitrary and capricious. For the reasons that follow, we deny the petitions.

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UPS News

UPS hits customers with new fees for oversized packages – Reuters

United Parcel Service Inc (UPS.N) will begin charging an extra $150 next month to handle oversized packages and pallets, along with a new charge for packages with mislabeled dimensions, the company said on Wednesday.

The new fees add to charges UPS announced last year for oversized items and come as the world’s largest package delivery company is investing billions of dollars to expand and automate its U.S. sorting facilities.

UPS and rival FedEx Corp (FDX.N) currently deliver parcels up to 150 pounds (68 kg) to a person’s doorstep. The charges are aimed at discouraging retailers from shipping heavier products that can bog down parcel sorting facilities, the company said.

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UPS News

UPS to hire 1,700 for new Salt Lake packaging hub – Deseret News

A soon-to-be-opened packaging center could position Salt Lake City as one of the top distribution locales in the western United States.

It also has United Parcel Service putting out a call for more than 1,700 permanent employees to fill its massive new $275 million facility at 380 S. 6400 West in Salt Lake City’s northwest quadrant.

The Atlanta-based firm, which currently has 4,000 Utah workers, has immediate openings for a variety of full- and part-time supervisors and package-handler jobs. Wages begin at $15 per hour, with full-time health care benefits after 12 months and retirement benefits, according to Ken Cherry, UPS Desert Mountain District manager.

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UPS News

Striking Big Brown – Jacobin

UPS might be the next target of the national strike wave — but under very unusual circumstances.

Will the historic strike wave that began with teachers in February hit the United Parcel Service (UPS) this summer?

UPS is today the largest private-sector unionized employer in the United States with nearly 280,000 Teamsters. That includes its package division — which employs nearly 260,000 workers and sports UPS’s famous chocolate brown delivery trucks — and its smaller freight division. National contracts for both divisions expire on July 31, and the Teamsters are negotiating the two simultaneously.

On May 2, they called a national strike authorization vote. On Tuesday, materials for the vote reached rank-and-file members’ doors. The vote comes in the midst of negotiations which will not only impact UPS workers and their families, but also the union’s ability to organize the burgeoning nonunion logistics industry in the future.