{"id":74155,"date":"2023-10-18T18:47:21","date_gmt":"2023-10-18T22:47:21","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/fedex-expects-to-keep-most-of-the-business-it-gained-from-ups-amid-union-negotiations-analyst\/"},"modified":"2023-10-18T18:47:24","modified_gmt":"2023-10-18T22:47:24","slug":"fedex-expects-to-keep-most-of-the-business-it-gained-from-ups-amid-union-negotiations-analyst","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=74155","title":{"rendered":"FedEx expects to keep most of the business it gained from UPS amid union negotiations: analyst"},"content":{"rendered":"
\n

FedEx\u2019s Corp. executives expect to keep most of the shipping business the company picked up from rival United Parcel Service Inc. during that company\u2019s labor negotiations this year, and they also believe FedEx could hold onto thousands of package deliveries following Yellow\u2019s bankruptcy filing, according to BofA analysts. <\/p>\n

The analysts, led by Ken Hoexter, said in a note dated Tuesday that the remarks by the executives were made during an investor lunch that same day. FedEx
\n FDX,
\n -1.78%<\/bg-quote>,<\/span>
\n Hoexter said, gained around 400,000 packages a day out of the 1.2 million that UPS
\n UPS,
\n -2.14%<\/bg-quote>
\n lost. <\/p>\n

\n

However, he noted: \u201cThis is in contrast to UPS\u2019s commentary that it expects to win back a majority of its business, and is willing to pay customer penalties.\u201d<\/p>\n

Executives at FedEx also expect to retain around 5,000 shipments a day in extra less-than-truckload freight \u2014 generally, smaller shipments that only take up a portion of a trailer \u2014 following Yellow\u2019s chapter 11 filing in August, the analysts said. <\/p>\n

FedEx did not immediately respond to a request for comment. <\/p>\n

The FedEx executives made the remarks after UPS reached an agreement with the Teamsters union in July, following the threat of a strike. FedEx in September said it had gained \u201cupside\u201d from the often contentious negotiations between UPS and the union, as well as from Yellow\u2019s troubles. <\/p>\n

As shipping demand remains soft, FedEx is trying to cut billions of dollars in costs by cutting flights and executive roles, closing offices and bumping prices higher. But its workers could end up getting more as a result of the UPS deal: The BofA analysts noted that FedEx anticipates \u201can increase in labor rates post the UPS Teamster contract, but has built an increase into its annual wage growth expectations.\u201d<\/p>\n

UPS last month said it expected costs related to the deal with the Teamsters to rise at a rate of 3.3% over the contract\u2019s five-year lifespan. But the company said it \u201cretains flexibility to implement technology to further drive productivity inside our buildings.\u201d<\/p>\n

Trucking company J.B. Hunt Transport Services Inc.
\n JBHT,
\n -8.85%<\/bg-quote>
\n on Tuesday said it wasn\u2019t yet out of the current freight \u201crecession\u201d that came after the pandemic package-delivery boom fizzled. But the company\u2019s president, Shelley Simpson, said \u201cwe are seeing signs of things moving in a positive direction.\u201d<\/p>\n

Shares of FedEx were down 2.3% on Wednesday, while UPS fell 1.4%.<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

FedEx\u2019s Corp. executives expect to keep most of the shipping business the company picked up from rival United Parcel Service Inc. during that company\u2019s labor negotiations this year, and they also believe FedEx could hold onto thousands of package deliveries following Yellow\u2019s bankruptcy filing, according to BofA analysts. The analysts, led by Ken Hoexter, said […]<\/p>\n","protected":false},"author":1,"featured_media":74156,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-74155","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\nFedEx expects to keep most of the business it gained from UPS amid union negotiations: analyst | iFintechWorld<\/title>\n<meta name=\"description\" content=\"FedEx\u2019s Corp. executives expect to keep most of the shipping business the company picked up from rival United Parcel Service Inc. during that company\u2019s\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=74155\" \/>\n<meta property=\"og:locale\" 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