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A UPS Freight Strike is Looming. Are You Prepared?

November 2, 2018
5 min read
Less Than Truckload
Industry News
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United Parcel Service, Inc. (UPS), is prepping its customers for a potential strike in its freight division. UPS Freight handles Less Than Truckload (LTL) shipping. UPS’s parcel shipping service, which handles their small package delivery, will not be affected. If it comes to fruition, a UPS freight strike will negatively impact the LTL industry as a whole. Keep reading to find out why.

Why is a UPS Freight Strike Likely?

The Teamsters Union has been negotiating a new contract with UPS for its unionized freight members. Members rejected a contract proposed by UPS last month and are threatening to strike if a new offer isn’t agreed upon by the extension date of November 12th.

The Teamsters have already authorized a strike for the 11,000 UPS freight workers they represent and UPS is preparing its customers for the possibility.

In a Wall Street article published on November 1st, UPS spokesman Glenn Zaccara was quoted as saying,

“Because we do not have a guarantee against a work stoppage, we cannot afford to put our customers’ volume at risk of being stranded in our system.”

How Will a Strike Impact Your LTL Freight?

Last year, UPS controlled approximately 5% of the less-than-truckload market which represented more than $2.5 Billion in revenue. If the 11,000 UPS freight workers strike, those shipments will need to go somewhere. Other LTL carriers will be forced to absorb those shipments. This sudden influx of unanticipated LTL demand will undoubtedly stress the industry as a whole.

Capacity is going to be a major issue as carriers were already running tight ahead of the UPS news. LTL customers can expect to see rate increases and longer wait and delivery times.

How Amware Can Help

As a full service 3PL, Amware is well positioned to help ease the pain of customers who will undoubtedly be struggling to move their LTL shipments after November 12th.

This is largely due to the fact that Amware boasts relationships with many carriers, not just one. Customers utilizing Amrate, Amware’s proprietary LTL management software, are able to input their shipment’s information and receive quotes from multiple carriers through a single interface. Amware is also able to provide their LTL clients with guaranteed and or exclusive use options.

While LTL customers will likely see price increases across the board, Amrate will undoubtedly prove it’s worth by offering LTL customers quotes from multiple carriers.

Don’t wait until it’s too late. Now is the time to put Amrate to the test ahead of the impending increase in LTL shipping demand. Amware is happy to offer customers a 30-day free trial of Amrate. Click below to request your trial now.

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