Llame al (888) 572-7520 para hablar con un agente
Enviar mensaje a un agente
While speed remains important in some cases, cost and sustainability have gained ground when it comes to deliveries.
A new trend has started to gain momentum in the parcel delivery industry: more and more people are opting for slower delivery options to save money. As a result, major shipping companies like FedEx Corp. and UPS Inc. have been forced to recently cut their earnings forecasts. Currently, most customers prefer more affordable alternatives, such as ground shipping instead of air, a shift that could be a warning sign for what’s to come in upcoming financial reports.
The decline in demand for urgent shipments has been a consistent trend since 2021, with UPS reporting a 7.1% drop in the average daily volume of domestic air services in its latest quarter, while FedEx saw a 5% decrease in priority shipments. At the same time, companies have noted an increase in the popularity of cheaper shipping options across various markets.
Slow deliveries: a sign of an economic recession?
This shift has raised concerns among investors. The holiday season is a crucial period for shipping companies, but early indicators suggest that the upcoming holiday shopping season will not follow the same trends as last year. According to a survey conducted by Project44, more than 1,300 consumers in North America and the United Kingdom are buying gifts earlier to save on shipping costs. Additionally, two-thirds of respondents said they plan to spend less on gifts this year, and one in four cited shipping expenses as their main concern.
This move away from speed has triggered an identity crisis for companies specializing in fast deliveries. Despite the boom these companies experienced for years, the current reality is different; consumer preferences have shifted toward slower and more affordable options, and both companies have had to adapt.
The pandemic and the rise of fast shipping: stories from the past
The rise of Amazon.com Inc. significantly contributed to the demand for fast shipping, as consumers became accustomed to receiving their orders in two days, one day, or even within hours. During the pandemic, this trend intensified due to the need for essential goods and home improvement products. However, supply chain disruptions and product shortages led people to start accepting longer delivery times, and this change in attitude has endured.
Currently, the popularity of foreign brands like Shein and Temu has increased, offering products at very low prices, even though shipments can take up to a month to arrive. Even Amazon has begun to encourage slower deliveries by offering benefits to those who choose to receive their orders with an extended timeframe instead of the two-day express option.
In summary, the parcel delivery market is undergoing a significant shift in consumer expectations. While speed remains important in some cases, cost and sustainability have gained ground, forcing FedEx and UPS to adapt their strategies to meet these new demands.
ICE operation detains 120 drivers along the I-40
A three-day ICE operation along the I-40 led to the detention of 120 drivers for immigration-related violations. A three-day operation along Interstate 40 in western
October’s bankruptcy spike: 5 carriers file for Chapter 11 in just two weeks
During the first half of October five transportation-related companies filed for bankruptcy under Chapter 11. The transportation industry has gone through difficult months, but October
Could It Happen with Trucks? Tesla Investigation Reopens the Debate on Autonomous Freight Safety
Could It Happen with Trucks? Tesla Investigation Reopens the Debate on Autonomous Freight Safety
Road Safety in the U.S.: Faulty Brakes and Slow Tech Adoption Still Cause Thousands of Truck Crashes Every Year
Road Safety in the U.S.: Faulty Brakes and Slow Tech Adoption Still Cause Thousands of Truck Crashes Every Year
U.S. Trucking Companies Prepare for the Winter Season: Maintenance, Safety, and Efficiency
As winter approaches across the United States, trucking companies strengthen their maintenance, safety, and efficiency protocols to ensure uninterrupted freight movement. Preparing for harsh weather is essential for drivers, fleets, and logistics operators to maintain performance and protect both cargo and personnel.
World Mental Health Day: how to care for truck drivers’ mental health
As part of World Mental Health Day, we focus on caring for the mental health of truck drivers. World Mental Health Day reminds us that
Business hours: Monday to Friday from 8:00 AM to 5:00 PM. California time