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Can the minnows pick up the slack if the brown whale is beached?

February 15, 2023

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There are a lot of parcel-delivery players out there. Can they absorb enough parcels should UPS be impacted by a job action?

As the chart shown below indicates, there is no shortage of parcel-delivery companies in America. There are certainly far more than in 2018, the last year that UPS Inc. and the Teamsters union negotiated a collective bargaining agreement.

That contract expires July 31, and there is concern among parcel consultants that UPS shippers are taking the upcoming deadline too lightly to be actively looking for alternative capacity. Few expect a strike because all stakeholders have so much to lose. But UPS shippers are advised not to take any chances, especially as the Teamsters have more bargaining power than they’ve had in years.

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