The trucking, logistics, and shipping sector has battled the Great Freight Recession for about three years with no end in sight. Most companies have blamed reduced shipping demand, lower freight rates, and rising costs of labor, fuel, and insurance as reasons for declining revenues and profits. In the most desperate situations, shipping companies have filed for bankruptcy protection or even shut down operations. Conflicting opinions on trucking Experts have expressed conflicting opinions on the state ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-15451 United Parcel Service, Inc. (Exact name of registrant as specified in its charter) Delaware 58-2480149 (State or Other Jurisdic ...

This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. UPS' planned building closures in 2026 will impact 22 facilities with International Brotherhood of Teamsters union members across 18 states, according to court documents filed Friday. Buildings in Atlanta, Dallas, Las Vegas and Baltimore are among those "with bargaining unit employees" slated for closure this year, said Daniel Bordoni, UPS' president of ...

Core Viewpoint - United Parcel Service (UPS) is implementing a significant restructuring plan that includes closing 22 package sortation centers across 18 states to enhance profitability through network consolidation and automation [2][4]. Group 1: Closure Plans - UPS plans to close 22 sortation centers with union employees, including locations in Dallas, Miami, Baltimore, and Atlanta [1]. - This is part of a broader strategy to close 200 sortation centers over the next five years as part of the "Network of the Future" optimization plan [3]. - The company has already reduced 48,000 frontline jobs and closed 93 distribution centers in the previous year [3]. Group 2: Job Reductions - UPS aims to eliminate 30,000 jobs in the first half of the year, with 22 of the closures affecting union-represented employees [4]. - The company plans to reduce warehouse workers through attrition and delivery drivers through a buyout program, with potential involuntary layoffs if not enough drivers accept the severance package [6]. Group 3: Financial Incentives - UPS intends to offer $150,000 plus accrued benefits to over 100,000 drivers as an incentive for voluntary resignation [7]. - The Teamsters union is contesting this voluntary separation program in court, arguing it violates the contract by altering employment status without union consent [7]. Group 4: Relationship with Amazon - UPS is on track to decouple 50% of its business with Amazon by June due to unprofitable deliveries, and has agreed to outsource last-mile delivery for certain economy shipments to the U.S. Postal Service [2].

An internal union schism is possible, he explained, because “these younger, newer hires will complain, ‘Hey, I had a chance for a $150,000 payday bingo and the union screwed me out of it.’ ”“UPS is currently targeting a younger audience, which means instead of being those folks that would be in the union for another 20 or 30 years, they’re saying, ‘Here’s your money. Go away, and you can never work for UPS again.’ It’s kind of driving a wedge because unions want to grow the membership. They really don’t wan ...

Core Insights - The U.S. parcel volume is projected to grow significantly, reaching 22.37 billion shipments in 2024, a 3.4% increase from 2023, with expectations to hit 30 billion by 2030 [1] - Revenue growth for shipping companies has not kept pace with the increase in parcel volume, with total revenue rising by only 2.7% from $197.9 billion in 2023 to $203.2 billion in 2024 [2] - Major carriers like FedEx and UPS are facing challenges due to rising consumer expectations for faster, cost-free shipping, leading to significant operational cuts [3] Industry Trends - FedEx's Network 2.0 plan aims to streamline operations and reduce delivery costs, involving the closure of over 200 stations [4] - Analysts express skepticism about whether FedEx's Network 2.0 will alleviate pricing pressures, citing competitive rate pressures and freight headwinds [5][7] - Rising parcel volumes outpacing revenue growth, along with increasing labor and energy costs, may lead to higher shipping costs for consumers [6] Company Actions - FedEx plans to close more than 475 stations by the end of 2027, representing about 30% of its facility footprint, in response to competitive pressures [9] - UPS is also implementing significant cuts, including facility closures and workforce reductions, as part of its Network of the Future initiative [10][12] - Both companies are focusing on automation and efficiency to handle higher volumes and improve profitability [13] Competitive Landscape - Smaller independent carriers are gaining market share from FedEx and UPS, with a nearly 40% volume growth in the last five years [15][20] - UPS has reduced its reliance on low-margin business, notably cutting its volume from Amazon by over 50% [16] - The U.S. Postal Service's new low-cost shipping option is contributing to pricing pressures in the market [15] Consumer Impact - Despite efforts to lower operational costs, FedEx and UPS are not expected to reduce prices for consumers, potentially leading to higher shipping costs [17] - A survey indicates that shipping and logistics are likely to see significant price increases, with 22% of procurement professionals reporting cost rises of over 10% by the end of 2025 [19][21]

The Teamsters are suing UPS over the logistics giant’s planned rollout of another voluntary buyout program for full-time drivers, alleging that the decision constitutes a violation of the national contract agreed between both parties in 2023. The emergency motion included both a temporary restraining order and preliminary injunction, preventing the logistics giant from implementing any such separation program until an arbitrator rules on the alleged violations. The union filed the complaint Monday in a Ma ...

Core Viewpoint - UPS is undergoing significant workforce reductions, announcing 30,000 job cuts as part of a strategy to decrease its volume from Amazon, following a previous layoff of 48,000 jobs in October 2025 [1][2] Group 1: Job Reductions and Legal Issues - UPS has announced a second driver buyout plan, facing legal action from the International Brotherhood of Teamsters, which seeks to halt this initiative [1][2] - The Teamsters union, representing over 1 million members, filed for a temporary restraining order against UPS's "Driver Choice Program," labeling it an illegal buyout scheme [2][3] - Teamsters General President Sean M. O'Brien criticized UPS for its disregard for legal obligations and contracts with the union, emphasizing the company's role as the largest employer within the Teamsters [3] Group 2: Driver Choice Program - The Driver Choice Program is UPS's second buyout initiative, following the Driver Voluntary Separation Program announced in July 2025, which included a $1,800 annual service award and a minimum payout of $10,000 for participating drivers [4][5] - The specifics of how many drivers accepted the initial buyout remain undisclosed, but the new program is set to be implemented shortly [5] Group 3: Legal Proceedings and Stock Performance - The ongoing legal dispute between Teamsters and UPS may complicate the implementation of the buyout, although UPS has stated that legal proceedings will not impact its operations [6] - Despite the challenges, UPS's stock has seen a 19% increase year-to-date [7]

Core Insights - DHL Group has significantly reduced the physical workload of its workers by implementing autonomous mobile robots that can unload containers at a speed of up to 650 cases per hour, which previously required workers to walk close to a half marathon daily [1][3] - The company has scaled its automation projects from 240 in 2020 to 10,000, with 95% of its global warehouses benefiting from these innovations [2][3] - Automation has led to a 30% increase in units picked per hour by item-picking robots and a 20% efficiency boost from autonomous forklifts in certain warehouses [3] DHL's Automation Strategy - DHL aims to grow its business while facing challenges in finding additional labor and warehouse space, indicating a shift towards automation and AI for greater efficiency [4] - The company has deployed over 8,000 collaborative robots globally and hired 40,000 people, emphasizing that automation complements rather than replaces human labor [14][15] - DHL's automation strategy includes a focus on item picking, with more than 2,500 robots currently in operation [14] Industry Trends - Other companies like UPS and FedEx are also investing in automation, with UPS planning to increase the percentage of U.S. volume processed through automated facilities to 68% by the end of the year [5] - FedEx is enhancing worker roles through automation, installing robotic arms and partnering with AI companies to optimize operations [6] - The global warehouse automation market is projected to exceed $51 billion by 2030, indicating a strong trend towards automation in the logistics sector [7] Workforce Dynamics - The rise of automation has led to significant layoffs at UPS, with over 75,000 job cuts as the company focuses on efficiency [10] - Unions like Teamsters are advocating for workers' voices in the technology deployment process, emphasizing the importance of human labor in the success of these companies [12][13] - Experts suggest that automation is not replacing jobs but rather shifting the skill sets required in the workforce, with a focus on technical roles [18][19] Future Outlook - A study indicates that 51% of factories expect to have fully automated warehouses by 2040, with 70% of logistics executives prioritizing autonomous supply chains as an investment [22] - The industry is experiencing a shortage of skilled workers, which automation can help address by augmenting the workforce rather than replacing it [20][21]

Core Argument - The article discusses the profound impact of artificial intelligence (AI) on the job market, suggesting that the U.S. is unprepared for the potential disruptions it may cause to employment and economic stability [1]. Group 1: Historical Context and Current Trends - The establishment of the U.S. Bureau of Labor Statistics (BLS) aimed to measure labor conditions and create fair outcomes amidst industrial changes, highlighting the importance of data in understanding economic realities [5][6]. - The BLS has documented significant job growth in various sectors, such as a 907% increase in mobile food service jobs since 2000, indicating a dynamic labor market [6]. - However, the BLS is limited in its predictive capabilities, particularly regarding the impact of emerging technologies like AI on the workforce [7]. Group 2: AI's Impact on Employment - AI is rapidly transforming job functions, enabling tasks to be completed more efficiently than ever before, which raises concerns about job displacement [8][9]. - Predictions from industry leaders suggest that AI could lead to a 10% to 20% increase in unemployment rates and potentially eliminate half of entry-level white-collar jobs within the next decade [10]. - A Reuters/Ipsos survey indicates that 71% of Americans fear AI will lead to permanent job losses, reflecting widespread anxiety about the future of work [9]. Group 3: Economic Resilience and Job Creation - Economists argue that capitalism has a strong resilience, often leading to job creation following technological advancements, as seen with ATMs and software like Excel [8]. - The BLS forecasts a 3.1% employment growth rate over the next decade, which, while lower than previous years, still represents the addition of 5 million jobs [8]. Group 4: The Role of Policy and Corporate Responsibility - There is a growing concern that corporate leaders are prioritizing automation and efficiency over employee welfare, leading to potential mass layoffs [22][23]. - The article suggests that CEOs are under pressure to demonstrate the benefits of AI quickly, often resulting in job cuts rather than exploring ways to integrate AI while supporting their workforce [22][23]. - Proposals for policies such as retraining programs and a robot tax to support displaced workers are discussed, but there is skepticism about their implementation [33][28]. Group 5: Political and Social Implications - The political landscape is characterized by a lack of proactive measures to address the challenges posed by AI, with many lawmakers adopting a hands-off approach [26][27]. - The article emphasizes the need for a coordinated response to the potential upheaval caused by AI, suggesting that without intervention, the consequences could be severe for both the economy and society [30][31].