UPS Shipping Alert

Updated: July 26, 2023

UPS and the International Brotherhood of Teamsters have reached a tentative agreement on a new national contract.

The tentative deal is a major step toward averting a strike that could keep UPS from delivering packages. The union's current contract with the company is set to expire Aug. 1, 2023.

The bargaining process isn't over yet, however. Next, the union will present the agreement to the hundreds of thousands of UPS employees it represents for review and voting.

Updated: July 24, 2023

As we approach the possible strike date of August 1st, we want to keep you informed about our contingency plans in the event of a UPS labor strike. Currently, UPS and the Teamsters Union have not reached an agreement on a new labor contract, which has prompted us to implement precautionary measures to ensure minimal disruption to your orders.

To give you further insight into our contingency plans, we intend to start utilizing these measures the week of July 24th, should there be no resolution reached. 

Our contingency plans include the following key actions:

1. UPS Contingency Capabilities
   • In the event of a strike, UPS will still have some capacity to process packages, albeit at a reduced level. According to industry analysts, UPS may be able to handle approximately 4 million packages per day, which is approximately 20% of their normal volume. While UPS has not publicly disclosed their contingency plans, our Operations Leadership is in communication with UPS executives to secure their support for IMS in a strike scenario.
2. Alternative Parcel Providers
   • In addition to UPS, we have a contract with FedEx, and we estimate that they will be able to absorb approximately 40% of our UPS volume.
   • Additional smaller carriers such as Speedee, OnTrac, ATL & LSO are also contracted to handle regional shipments
   • If needed, we may also utilize the United States Postal Service (USPS)
3. Diversion of Activity from Parcel to LTL
   • We will continue to encourage customers to increase their orders to a collective weight of 120 lbs or more to shift from a small parcel to LTL (Less Than Truckload) pallet shipment
4. Customer Safety Stock
   • We have received communications from several customers indicating their intent to increase their ordering levels in anticipation of a possible strike. We highly commend this approach as it helps ensure that you have sufficient safety stock on hand to mitigate any delays in deliveries.

As we monitor the situation closely, we will continue to provide updates on any developments related to the UPS negotiations. Our goal is to support you throughout this period and minimize any potential disruptions to your operations; however some degree of delays will most likely be inevitable.

At IMS, we value your business and are committed to maintaining the highest level of service for you. If you have any questions or require further assistance, please do not hesitate to reach out to your Territory Manager or our Customer Service team.

Thank you for choosing IMS as your trusted distributor.

Created: July 13, 2023

The Teamsters Union, representing UPS drivers, and UPSⓇ are currently engaged in negotiations to establish a new labor agreement before the expiration of the current one on July 31, 2023. As these discussions persist and the potential for a strike on August 1, 2023, remains, we strongly recommend that customers take precautionary measures by placing additional inventory orders to mitigate potential delivery delays and minimize disruptions.  

At IMS, we maintain a strong partnership with UPS and are optimistic that both parties will reach a mutually beneficial agreement before the deadline. Our UPS representatives have reassured us of their collaborative efforts with the Teamsters to address the needs of UPS employees and customers.

Furthermore, UPS has implemented contingency plans to ensure the continuity of deliveries in the event of a strike, although some delays may be expected. In line with this, IMS has also established contingency measures, including:

• Increasing orders through our private fleet whenever feasible.
• Utilizing alternative carriers as an option.
• Prioritizing urgent orders and temporarily delaying less time-sensitive ones.

Rest assured, we will closely monitor the progress of the negotiations and provide regular updates in the coming weeks. Our commitment remains steadfast in assisting customers throughout this situation.

We sincerely appreciate your choice of IMS as your distributor.