Potential UPS Strike Caused Brands to Scramble to Find an Alternative Carrier to Meet Capacity Needs
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Jul 07, 2023
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With the potential for a devastating strike at UPS now in our rearview mirrors, many online retailers are breathing a sigh of relief. But as the clock wound down towards August 1, Supply Chain Drive senior reporter Max Garland noticed an interesting trend. While many companies were scrambling to find alternative carriers to meet capacity needs, others were planning to maintain existing volume levels at UPS regardless of the outcome.
Max’s article (written just prior to the settlement agreement) is linked here and includes insights from AxleHire COO Adam Bryant.
There are a variety of reasons that shippers chose not to step away from UPS, even temporarily. First was a belief among many shippers, following repeated assurances from UPS CEO Carol Tome, that a settlement would be reached prior to the August 1 deadline. In some cases, shippers are tied into contracts that include severe penalties for missing contracted volume levels. There were also questions related to the perceived ease or difficulty of onboarding new carriers, especially in a short timeframe.
AxleHire continues to believe that a diverse carrier mix can provide companies with benefits that include faster and more reliable service, cost control, more sustainable deliveries, personalized service, and enhanced customer loyalty. AxleHire is often able to onboard new customers in weeks instead of months, and our combination of gig drivers and delivery service providers (DSPs) gives us the flexibility to scale quickly in support of new business.
Now that the “crisis” is over, it’s time for retailers to thoughtfully consider the benefits of a more diversified carrier mix. You can connect with one of our logistics experts here to begin that conversation.