Estimated 5% of UPS’ daily parcels diverted due to strike concerns

ShipMatrix said about 1 million daily parcels were diverted to FedEx

UPS hikes 2024 tariff rates by 5.9% to match FedEx (Photo: Jim Allen/FreightWaves)

UPS Inc. (NYSE: UPS) lost about 5% of its domestic average daily volume, almost exclusively to rival FedEx Corp., (NYSE: FDX) due to shipper concerns over a possible strike by the Teamsters union, according to consultancy ShipMatrix Inc.

ShipMatrix, which compiles extensive data on industry trends and issues, said about 1 million parcels were diverted daily to FedEx in the days and weeks leading up to a tentative agreement announced last Tuesday. The percentage of diversion is based on UPS handling, on average, 18.6 million domestic parcels per day as of the end of the first quarter, ShipMatrix said.

Satish Jindel, ShipMatrix president, said about half of the diverted parcels will remain with FedEx because the prices offered were lower than what UPS would charge.

Diversion to other providers like the U.S. Postal Service, regional carriers and parcel consolidators that aggregate large volumes to induct into the Postal Service’s delivery network was statistically insignificant, Jindel said.


UPS’ 340,000 rank and file now have three weeks to review, ratify or reject the contract on an up-or-down majority vote. Voting ends on Aug. 22.

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