Resource Center/Article • 12/22/2022
What’s in this year’s peak holiday pudding? “Softened Demand”
Parcel and LTL carriers assess impact of “softened demand” from retail markets while building 2023 forecasts.
FedEx
- 11/18: The Trade Association for Logistics Professionals (TALP), founded by Spencer Patton to provide a collective negotiation and legal voice for FedEx Ground contractors, dissolved after determining the “committee, as structured, is not the appropriate vehicle to accomplish this goal [to better promote effective dialogue with FedEx Ground] and that better options exist.”
UPS
- The carrier says its ready to deliver this holiday season and points to its money-back guarantees as proof of confidence (in contrast to FedEx’s decision to suspend its money-back guarantees for some shipments during the peak holiday season).
GRI and Surcharges
LTL Carrier News
- Large LTL carriers began noting a declining trend in tonnage starting in September – a trend that continued into and escalated in November. Early into the month, Darren Hawkins, Yellow CEO, said the retail sector represented the greatest shrinkage in volume, but that industrial markets remained firm. Meanwhile, Saia saw its volume November shrinkage nearly double – ⬇3% YOY in October and ⬇7.7% in November. Volume shifts like this have spurred analysts like Ken Hoexter from Bank of America to lower carrier stock ratings. “Saia’s midquarter update showed LTL tonnage and shipment trends deteriorating faster in November and larger than our BofA monthly targets,” Hoexter said.
Share this page:
Success with a proven process
