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How Will the Looming UPS Strike Affect Amazon?

There are talks about UPS Teamsters Union members going on strike if a new contract is not agreed upon.

Many fear the strike will prompt delays in vital deliveries such as prescriptions and items to keep businesses running.

If UPS Teamsters union members go on strike, it will impact on Amazon deliveries, although the extent of the effect would depend on various factors.

Around 60% of the 8 billion parcels shipped by Amazon last year were handled by its logistics network. The remaining 40% were shipped by other carriers, with 28% by the United States Postal Service (USPS) and 8% by UPS. If UPS workers go on strike, the company's ability to handle its usual daily volume of nearly 25 million packages would be severely impacted. This could also result in slower delivery times for competitors like FedEx and the postal service if they face increased demand.

Here's how Amazon deliveries could be affected if UPS workers go on strike:

1. Reduction in UPS deliveries: If UPS workers halt work, the volume of packages UPS can handle would be significantly reduced. As a result, Amazon's utilization of UPS for deliveries would be limited, affecting the portion of packages shipped through UPS.

2. Increased reliance on other carriers: To mitigate the impact of a UPS strike, Amazon would likely increase its reliance on alternative carriers, such as its own logistics network, regional delivery partners, and other national carriers like FedEx or the United States Postal Service (USPS).

3. Longer delivery times in rural areas: Amazon shoppers in rural areas, who generally rely more on UPS or the USPS for deliveries, may experience longer delivery times if those carriers face increased demand due to the absence of UPS services. The availability and capacity of alternative carriers in specific regions would determine the extent of the delay.

4. Delays with third-party sellers: Third-party sellers on Amazon may also encounter delays if they primarily rely on UPS for their shipping needs. Sellers who utilize other carriers or fulfillment options within Amazon's network might experience fewer disruptions.

5. Enhanced reliance on Amazon's logistics network: As a significant portion of Amazon's deliveries are already handled by its logistics network, the company's ability to manage its own deliveries would likely mitigate the impact of a UPS strike. Amazon's extensive network of warehouses, distribution centers, and delivery vehicles would help maintain a level of service for its customers but will not be able to handle the entire workload.

Ultimately, the specific outcome would depend on the duration and scale of the UPS strike, as well as the contingency plans and alternative arrangements that Amazon has in place to ensure efficient delivery operations. A short strike may cause some delays but the longer the strike lasts, the more devastating the effects will be.

Remember, UPS is a National Chain. Not only will it affect deliveries locally, but worldwide.

More about the Looming Strike

"We have 340,000 Teamsters that are united, ready to fight and be rewarded for their hard work," said Sean O'Brien, the general president of the International Brotherhood of Teamsters.