USPS is making big moves to keep up with its competitors UPS and FedEx

Network AssociationBehind the Wheel
Written By Jennifer Joslyn

The U.S. Postmaster General Louis DeJoy is looking to transform the government agency into a major competitor with private carriers such as FedEx and UPS. But will these changes be in vain?

DeJoy said in an interview with Supply Chain Dive that the goal of the organization is to be a cost-effective option for customers to use instead of a private shipper. Affordability and reliability are the priorities of the United States Postal Service moving forward. Some changes being implemented involve an expansion of its network of operations and an improvement in parcel deliveries.

From the years 2007 through 2020, the Postal Service reported losses totaling $87 billion.

Read more from Supply Chain Dive ▶

you also might like...
House Approves USPS Crash Reporting Rules for Trucking Contractors
House Approves USPS Crash Reporting Rules for Trucking Contractors

House lawmakers have passed the Mail Traffic Deaths Reporting Act of 2024, directing the U.S. Postal Service to create new rules for tracking crashes involving its trucking contractors.

UPS Overcomes First-Quarter Challenges with New USPS Contract
UPS Overcomes First-Quarter Challenges with New USPS Contract

United Parcel Service (UPS) reported a disappointing start to the year with first-quarter earnings revealing a 5.3% drop in revenue and a 31.5% plunge in operating profit compared to last year.

UPS Navigates Challenges with Strategic Cost Cuts and New Contracts
UPS Navigates Challenges with Strategic Cost Cuts and New Contracts

United Parcel Service (UPS) has reported a better-than-expected quarterly profit, navigating through softer package delivery demand with strategic cost reductions and focusing on high-margin sectors.

New Delivery Surcharges by FedEx and UPS Affecting Urban Areas
New Delivery Surcharges by FedEx and UPS Affecting Urban Areas

FedEx and UPS have introduced Delivery Area Surcharges (DAS) in 82 additional ZIP codes across the US, covering nearly 1% of the population.

FedEx and UPS Tackle Tough Decisions Amidst Market Shifts
FedEx and UPS Tackle Tough Decisions Amidst Market Shifts

In the fast-paced world of logistics, FedEx and UPS are making some big changes.

Postal Service Safety Report Reveals Oversight Gaps in Trucking Contracts
Postal Service Safety Report Reveals Oversight Gaps in Trucking Contracts

A recent safety report by the U.S. Postal Service's Office of Inspector General (OIG) suggests lax oversight of contracted trucking companies, brokers, and drivers may contribute to accidents and fatalities on American highways.

FedEx's Potential Profit Boost is From Rethinking the Postal Partnership
FedEx's Potential Profit Boost is From Rethinking the Postal Partnership

FedEx might actually benefit from losing its colossal contract with the U.S. Postal Service, according to Brandon Oglenski, an analyst at Barclays Bank.

UPS Expands Saturday Home Delivery Service Across Canada
UPS Expands Saturday Home Delivery Service Across Canada

Oh, Canada! UPS is launching a new Saturday home delivery service in key Canadian markets, starting with Toronto and expanding to Greater Vancouver, Montreal, Calgary, and Laval by March.

UPS Implements Staff Reductions and Shift Cuts Across Multiple States Amidst Decreased Package Demand
UPS Implements Staff Reductions and Shift Cuts Across Multiple States Amidst Decreased Package Demand

UPS is scaling back package sorting shifts and reducing staff at facilities in Connecticut, Maryland, and Oregon due to decreased demand for package delivery.

UPS Explores Strategic Alternatives for Coyote Logistics Amid Market Challenges
UPS Explores Strategic Alternatives for Coyote Logistics Amid Market Challenges

United Parcel Service (UPS) is exploring options, including a potential sale, for its brokerage unit, Coyote Logistics.

UPS Plans to Cut 12,000 Jobs in Cost-Saving Effort Amid Revenue Decline
UPS Plans to Cut 12,000 Jobs in Cost-Saving Effort Amid Revenue Decline

UPS is set to cut 12,000 jobs in a cost-saving move aimed at reducing expenses by $1 billion.

UPS and FedEx Extend Demand Surcharges Despite Lower Year-Over-Year Volumes
UPS and FedEx Extend Demand Surcharges Despite Lower Year-Over-Year Volumes

UPS and FedEx have decided to extend their demand surcharges for additional handling and large packages, despite lower year-over-year volumes.

FedEx Expects Significant Business Loss with USPS
FedEx Expects Significant Business Loss with USPS

FedEx is anticipating a significant loss of business with the U.S. Postal Service when its current contract expires.

UPS Set to Hire Over 100,000 Holiday Workers, Matching Last Year's Numbers
UPS Set to Hire Over 100,000 Holiday Workers, Matching Last Year's Numbers

UPS is gearing up for the holiday season by planning to hire more than 100,000 workers, a number consistent with its hiring levels over the past three years.

U.S. Postal Service Ends Holiday Surcharges for Competitive Edge
U.S. Postal Service Ends Holiday Surcharges for Competitive Edge

The U.S. Postal Service has announced that it will not impose peak season surcharges during the upcoming holiday season.

UPS-Teamsters Deal May Heighten Wage Pressure Across Logistics Industry
UPS-Teamsters Deal May Heighten Wage Pressure Across Logistics Industry

The recently ratified labor contract between UPS and the International Brotherhood of Teamsters is expected to exert wage pressure on other logistics companies, including FedEx.

UPS Attracts Job Seekers with $170,000 Driver Pay After Union Victory
UPS Attracts Job Seekers with $170,000 Driver Pay After Union Victory

Since securing a $30 billion contract over five years, United Parcel Service (UPS) has experienced a surge in interest from job seekers.

Postal Service Slashes Air Cargo by 90% in 2-Year Cost-Cutting Drive
Postal Service Slashes Air Cargo by 90% in 2-Year Cost-Cutting Drive

The U.S. Postal Service has drastically decreased its air cargo shipments by 90% over a two-year period, leading to an estimated $1 billion in annual transportation cost savings, according to U.S. Postmaster General Louis DeJoy.

Strike Averted, but UPS Customers May Face Higher Shipping Rates After Teamsters Deal
Strike Averted, but UPS Customers May Face Higher Shipping Rates After Teamsters Deal

The Teamsters and UPS have reached a tentative labor agreement, averting a potential strike that could have disrupted the supply chain.

Unwavering Shipper Loyalty Remains Amidst Looming UPS Strike Threats
Unwavering Shipper Loyalty Remains Amidst Looming UPS Strike Threats

Despite the looming threat of a UPS strike, many companies have not shifted their package volumes to other carriers.

Potential UPS Strike Looms Large: Implications for Inflation Progress
Potential UPS Strike Looms Large: Implications for Inflation Progress

A potential strike by 340,000 unionized workers at United Parcel Service Inc. (UPS) has the U.S. economy on edge, as it could intensify two significant challenges: inflation and supply-chain disruptions.

Possibility of UPS Strike Triggers Changes in Logistics Sector as Negotiations Continue
Possibility of UPS Strike Triggers Changes in Logistics Sector as Negotiations Continue

As negotiations between UPS and the Teamsters Union continue, the possibility of a strike is already having an impact on the logistics sector.

UPS Negotiations Resume as Shippers Hope for Resolution on Part-Time Employee Pay Issue
UPS Negotiations Resume as Shippers Hope for Resolution on Part-Time Employee Pay Issue

Negotiations between UPS and the Teamsters Union have resumed after a pause, bringing hope to UPS shippers.

Potential UPS Strike Threatens Supply Chain Chaos and Economic Impact
Potential UPS Strike Threatens Supply Chain Chaos and Economic Impact

With the July 31 strike deadline approaching for Teamsters at UPS, concerns are growing about the potential impact on the supply chain and the economy.

Teamsters President Urges White House to Refrain from Intervention in Potential UPS Worker Strike
Teamsters President Urges White House to Refrain from Intervention in Potential UPS Worker Strike

Negotiations between UPS and the Teamsters union, representing 340,000 workers, have reached a standstill, with a looming July 31 deadline for a new contract.

A 10-day UPS strike could be the costliest in US history
A 10-day UPS strike could be the costliest in US history

A potential 10-day strike by UPS workers in the US could have significant economic consequences, estimated to cost the country $7.1 billion, according to an analysis by Anderson Economic Group.

Wages for Part-Time Employees Cause Stalemate in UPS-Teamsters Contract Negotiations
Wages for Part-Time Employees Cause Stalemate in UPS-Teamsters Contract Negotiations

The ongoing contract negotiations between UPS and the International Brotherhood of Teamsters have reached an impasse primarily due to differing proposals regarding part-time employee wages.

US CEP Market Experiences Shifts in Demand, Pricing Power, and Competition
US CEP Market Experiences Shifts in Demand, Pricing Power, and Competition

The US Courier, Express, and Parcel (CEP) market has seen a decline in demand and a shift in consumer spending patterns, leading to decreased package deliveries.

What can we learn from the UPS strike in 1997?
What can we learn from the UPS strike in 1997?

The 1997 UPS strike exposed the risks associated with relying on a single carrier for business operations, impacting companies across various sectors.

Nationwide Strike at UPS Looms as Union Walks Away from Contract Talks
Nationwide Strike at UPS Looms as Union Walks Away from Contract Talks

The International Brotherhood of Teamsters has declared that a nationwide strike at UPS is imminent after union negotiators abruptly left national contract talks with the company.

Jennifer Joslyn
Previous

Companies need peak season labor spots filled - but will the workers answer their call?
Next

White House awards almost $38 million in grants to expand truck parking with Bipartisan Infrastructure Law