US truckers plan to strike, millions of packages may be stranded

US truckers plan to strike, millions of packages may be stranded

Amazon has been considering expanding its logistics and delivery business for the past decade. However, the sudden outbreak of the epidemic three years ago disrupted Amazon's expansion plans and gave logistics giants such as UPS, FedEx and USPS some breathing time.

 

However, Amazon may be considering restarting the plan recently, and the most likely opportunity is the strike action of the American Truckers Union against its employer UPS.

 

Once the strike is finalized, most of UPS's operations in the United States will be paralyzed, and millions of packages waiting to be delivered will be piled up in every corner of the warehouse.



Some experts predict that the truck drivers' contract will expire at the end of July, and the strike should also occur at that time. By then, UPS's market share may be taken away by other competitors because of this strike.

 

Amazon has been eyeing this opportunity for a long time. Judging from the current revenue share, Amazon is one of UPS's largest customers. According to the latest annual data, Amazon's related business accounts for 11% of UPS's total revenue.

 

Satish Jindal, head of consulting firm ShipMatrix, said that if truck drivers strike against UPS, Amazon would likely shift the business to other delivery partners for delivery.

 

According to ShipMatrix data, Amazon's business volume is equivalent to 1.85 million packages per day, accounting for about 9% of UPS's total daily business volume in the United States. If Amazon transfers its business, the impact on UPS will be catastrophic.

 

Jindel believes that the truckers' strike will be a great opportunity for Amazon to grab more market share. In 2022, Amazon can deliver 13 million packages a day through its contracted drivers, so Amazon is fully capable and experienced to take over UPS's market share.

 

However, Dean Machuba, head of US operations at CrossWinds Parcel Consulting, disagrees. He said: "The entire logistics chain is very complicated, and Amazon may not achieve the expected results even if it invests a lot."

 

Josh Taylor, senior director of professional services at consulting firm Shipware LLC, agrees. "I don't think Amazon is interested in this," Taylor said. "They have enough money and experience to do it, but they have better places to spend the money."

 

However, no matter what decision Amazon makes, the most important thing for sellers is to avoid using UPS in the near future, especially independent website sellers. Otherwise, if the strike really happens and orders are stuck on the way, I am afraid that the first choice consumers will make is to apply for a refund.

USA

strike

ups

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