Giant shipping company reveals 22 facilities closing nationwide

Industry Overview - The trucking, logistics, and shipping sector has been experiencing the Great Freight Recession for approximately three years, with no clear end in sight. Companies attribute declining revenues and profits to reduced shipping demand, lower freight rates, and rising costs of labor, fuel, and insurance [1] - Some experts express conflicting opinions on the trucking industry's state, with some believing dire conditions persist while others see potential recovery on the horizon [2] Financial Pressures - The U.S. trucking industry is under significant financial pressure, as spot rates have not kept pace with inflation, which is squeezing carrier margins [3] - Doug Waggoner, CEO of Echo Global Logistics, predicts improvement in the trucking industry, likely after the first quarter of 2026, despite the current harsh economic reality [3][4] Company Actions - United Parcel Service (UPS) plans to close 22 facilities across 18 states, which employ union workers, and will cut 30,000 jobs in the first half of the year [5] - UPS is decoupling 50% of its business with its largest customer, 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 [6] - The Teamsters union has filed a lawsuit against UPS regarding a proposed $150,000 per driver buyout plan, which is part of the company's restructuring efforts [8]