UPS announced recently that they’ve entered into an agreement to sell UPS Freight (UPSF) to TFI International (NYSE and TSX: TFII) for $800 million in a deal that’s expected to close during the second quarter of 2021.
Challenging conditions have been touching all modes in the transportation industry lately. To shed light on what’s happening in each mode, we held a webinar with a panel of shippers and industry experts. This webinar was the third in our three part Code Red webinar series, and all three webinars can be found here. Read on to find the highlights of this latest webinar.
BY JEAN REGAN, PRESIDENT & CEO
We’ve been riding a rollercoaster of freight trends in 2020 rather than following anything close to a “typical” pattern. To get a better perspective on what's happening in the market now and what shippers can do about it, we held the webinar Code Red Solutions for Shippers. This was the second of our "Code Red" webinar series, which followed up the initial Code Red Freight Forecast webinar. Here are a few of the highlights.
Parcel volumes have been growing sharply for almost a decade and just accelerated. According to Pitney Bowes, there’s been about 20% growth annually since 2013. Last year, this added up to 103 billion packages shipped around the world and about 15 billion in the United States. This year, the peak of the previous holiday season was surpassed in the summertime thanks to the pandemic, with the busiest season still ahead.
The threat of disruptions is something that's been near the top of many shippers' minds since the shutdowns earlier this year, and with COVID cases rising, it's a valid concern.
While many shippers have made a Transportation Management System (TMS) part of their supply chain management suite, a significant portion of the industry is still relying on manual methods to try and track their freight spend—as much as 25% by some estimates. If the coronavirus has taught us anything, it’s that we all need to be able to access reliable information at any time from any place. A TMS became a requirement for shippers before 2020, but COVID-19 has driven the point home even more.
While nobody was watching, the United States launched a new federal agency this January: the United States International Development Finance Corp (DFC). Its mission at launch was largely to counterbalance China’s growth by boosting other overseas development. This mission quickly gained relevance as the pandemic grew, and in May the agency was also tasked with helping bring more manufacturing back to the United States.
Market Recovery, Parcel Surcharges and LTL Sourcing