Amazon, FedEx, US Postal Service prep as potential UPS strike looms

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Shipping companies like Amazon, FedEx and the U.S. Postal Service are monitoring the evolving negotiations between UPS and the Teamsters union as a potential strike looms.

has in recent years diversified its delivery channels and increased its in-house delivery capacity. That was in part due to a decision by UPS to establish a maximum package volume agreement with Amazon, which resulted in the percentage of UPS revenue derived from handling Amazon shipments declining from 13.3% in 2020 to 11.3% in 2022, according to UPS securities filings.

"While we’re watching what is happening, we don’t expect a significant impact on customer deliveries," an Amazon spokesperson told FOX Business in a statement. "We work with a large network of carriers and delivery service partners and most of our customer orders are delivered through our own last mile network."

FedEx is planning to prioritize its existing customers if the shipping industry is disrupted by a UPS Teamsters strike in August.a statement to explain that the company will prioritize its existing customers if the shipping industry’s services are disrupted.

 

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