Announcement: ShipRx's 2025 General Rate Increase Report
Download NowAfter breaking things off in 2019, Amazon and FedEx rekindle their relationship with FedEx supporting deliveries of heavy and bulky Amazon packages
In previous years, UPS and FedEx have moved to reduce service in rural areas. Flying in the face of traditional carrier logic, Amazon recently announced that it would invest $4 billion by 2026 to expand its rural delivery network significantly.
Less than six months after implementing their last rate increase, UPS is raising some of their rates again on June 2, 2025.
In February, UPS announced that it would decrease the volume of Amazon parcels delivered by 50%. In the carrier's Q1 2025 earnings call, Executive Vice President and CFO Brian Dykes said that with the volume reduction, UPS is "undertaking the largest network reconfiguration in our history."
Effective April 21, 2025, DHL Express has temporarily suspended global business-to-consumer (B2C) shipments exceeding $800 to the United States.
Designed to eliminate import duty surprises for shoppers, UPS Global Checkout offers near-real-time updates to its system for policy changes, international tax laws, and duties and tariffs.
Last year, 23.8 billion parcels were shipped in the US, marking a 4% increase from 2023 and 50% growth since 2019. Consumers rely on parcel deliveries now more than ever, but FedEx and UPS are losing revenue.
Last month, US Postmaster General Louis DeJoy announced his resignation. Now, he's signed an agreement with the Department of Government Efficiency (DOGE) and the General Services Administration to discover cost-cutting possibilities.
The parcel delivery industry is feeling the effects of today's volatile economic landscape. Concerns over tariffs that may spark a recession and trade war have businesses and consumers acting cautiously, leading FedEx to lower its full-year forecast for adjusted profit from $19-$20 to $18-$18.60.
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