Navigating the Potential UPS Strike and FedEx's Opportunistic Sales Tactics Author: Seth Kupersmith
March 28, 2023

The shipping industry is abuzz with rumors of a potential UPS strike and how FedEx is leveraging the situation to gain more customers. The uncertainty surrounding the strike has left many businesses on edge, worried about the potential impact on their supply chains and bottom lines.



FedEx's Sales Tactics

FedEx, sensing an opportunity amidst the uncertainty, has been quick to swoop in and capitalize on the potential UPS strike. The carrier has been aggressively promoting its services to UPS customers, offering incentives and discounts in a bid to win them over. While it is natural for FedEx to seize the opportunity to grow its customer base, some businesses might feel overwhelmed by the pressure to make a hasty decision.



The Potential UPS Strike

The possibility of a UPS strike has sent shockwaves through the business world, with many companies relying heavily on the carrier's services for their shipping needs. The strike, if it happens, could lead to disrupted supply chains, delayed deliveries, and increased costs for businesses already grappling with a myriad of other challenges.

Reasons for the Potential UPS Strike

Labor disputes - The ongoing conflict between UPS and its unionized workers is one of the main factors behind the potential strike. Disagreements over wages, working conditions, and benefits have led to tensions between the company and its workforce, making it challenging to reach a mutually satisfactory resolution.

Increased workload - The rapid growth of e-commerce has resulted in a massive surge in package volume. This development has significantly increased the workload for UPS workers, further fueling their demand for better pay and working conditions to cope with the additional pressures and demands.

Worker safety concerns - In addition to the issues surrounding pay and workload, UPS employees are raising concerns about what they perceive as inadequate safety measures. They argue that the company's current approach to safety puts them at a higher risk of workplace accidents and injuries.

A Closer Look at the Parties Involved

UPS - As a leading global package delivery company, UPS finds itself at the epicenter of the potential strike. The company's reputation and operational efficiency are on the line, making it crucial for UPS to address the concerns of its workers and find a suitable resolution.

Unionized UPS workers - The UPS workers, who are represented by labor unions such as the Teamsters, are critical players in the strike negotiations and any potential industrial action that might ensue. Their demands and willingness to compromise will have a significant impact on the outcome of the situation.

Customers and businesses - Companies that rely on UPS for their shipping needs find themselves affected by the potential strike. Their supply chains and delivery timelines are at risk, which may force them to seek alternative shipping solutions or adjust their operations to accommodate potential disruptions.

Possible Consequences of the UPS Strike

Disrupted supply chains - If the UPS strike goes ahead, package delivery could face significant delays, leaving businesses scrambling to find alternative shipping solutions to maintain their operations and meet customer expectations.

Increased costs - Turning to other shipping providers may lead to increased costs for businesses. Limited availability and heightened demand for alternative carriers' services could drive up prices and strain budgets.

Loss of market share for UPS - A prolonged strike could tarnish UPS's reputation and prompt customers to seek more dependable carriers, resulting in a loss of market share for the company.

Effects on the overall economy - A widespread disruption in the shipping industry could create a ripple effect that touches businesses across various sectors. Industries reliant on timely shipments may face challenges, and the broader economy could experience negative consequences.



Your Ally in the Shipping Industry

If you’re concerned about how a potential UPS strike might affect you and how to best prepare, consider connecting to the Lojistic platform. Lojistic is a free shipping analytics and cost-savings automation platform dedicated to helping businesses control and reduce shipping costs.

Lojistic offers real-time insights and actionable data, enabling businesses to make informed decisions and adapt quickly to changes in the shipping landscape. Lojistic empowers businesses to navigate the shipping industry's challenges with confidence and ease, ensuring they continue to thrive no matter what the carriers may throw at them.

If you're a business with shipping expenses, you’re only minutes away from the tools you need to manage and lower shipping costs. Check out our demo to see how it works.

Have Questions? Call us at 800-783-5753 or send us your questions here. Our shipping experts are always happy to help.

Facebook Icon Youtube Icon Linkedin Icon Lock Icon Arrow Symbol Arrow Symbol