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UPS Successfully Completes Acquisition of MNX Global Logistics, Enhancing Time-Critical Healthcare Services

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Global Logistics, Global Trade Daily, News

UPS Successfully Completes Acquisition of MNX Global Logistics, Enhancing Time-Critical Healthcare Services

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UPS (NYSE: UPS) has officially wrapped up its acquisition of MNX Global Logistics (MNX), a renowned global provider of time-critical logistics. The acquisition, which received all necessary regulatory approvals, was finalized on November 2, 2023.

This strategic move to bring MNX under the UPS umbrella aims to bolster the company’s capabilities in time-critical logistics, with a particular focus on serving healthcare customers across the United States, Europe, and Asia. MNX is highly regarded for its consistent and punctual delivery of critical goods, and it has a well-established reputation for transporting radiopharmaceuticals and temperature-sensitive products. This expertise will play a pivotal role in aiding UPS Healthcare and its clinical trial logistics subsidiary, Marken, in meeting the ever-growing demand for these specialized services within the healthcare sector.

With the added knowledge and proficiency from MNX, UPS is poised to maintain its position as an industry leader in delivering global services to customers who require time-critical and temperature-sensitive logistics solutions. This acquisition underscores UPS’s ongoing commitment to invest in cutting-edge technologies and capabilities, ultimately ensuring that customers receive the most dependable and efficient logistics solutions available.

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Air Cargo, Archives, Global Logistics, Global Trade Daily, Stories

New Fulfillment Frontier: Going the Last Mile in Package Management

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We are moving into the traditionally high-volume shopping months—back-to-school,  Black Friday, Cyber Monday, the holidays, and post-holiday sales. All this increased activity will be layered onto the already higher-than-ever levels of pandemic online shopping we have experienced for the last few months. According to the National Retail Federation, parents report plans for record-breaking back-to-school spending, with a particular emphasis on laptops, tablets, and headphones.

With more students and parents staying home,  multifamily properties should take their package experience of the last six months and work to create a package management strategy that will carry them through the peaks of the next online shopping wave.

E-Commerce Grows Double Digits

Growth in e-commerce over the last few months isn’t a blip or even a spike. It is more like a Teutonic shift. Thanks to the shop-from-home impact of the Covid-19 pandemic, e-commerce is poised to grow 18 percent by the end of this year. There are more Internet shoppers than ever before, and those shoppers are buying more. That means more—many more—package deliveries to multi-family properties.

From Millennials and GenZ to Boomers, all generations are in the game. More than 75 percent of the American population has purchased goods online, ordering literally everything—from toothpaste and diapers to televisions and dishwashers—from an estimated 12 to 24 million e-commerce sites. This tsunami of brown boxes has forced managers and staffs of multifamily properties to become an essential part of the “last mile” of the e-commerce supply chain.

What Is “Last Mile” and How Does It Affect Property Managers?

In the shipping and delivery industry, last-mile traditionally refers to the final step in the delivery of a product from a warehouse to the customer. This final leg, which can range from just a few blocks to fifty or a hundred miles, is often the most costly and challenging segment in the entire logistics flow—especially as online customers have come to expect rapid-fire delivery—often same or next day.

Whether it be for security or logistical reason, national carriers such as UPS, FedEx,  DHL, or USPS,  deliver to a property’s designated receiving area; making the multifamily property staff the de facto last step of the last mile. Your team then has to log, notify, and deliver the avalanche of packages. They lift and carry, stack, stash, and store and are responsible for the safety and secure delivery to the correct recipient.

Think Like a Carrier

Managers of multifamily properties can take a cue from these national carriers. Here are three tips to help you develop a proactive package management strategy that prepares multifamily property staff to handle last-mile deliveries like the pros.

1. Assess Current Delivery Operations: The volume and variety of deliveries over the last six months has been a graduate course in delivery management. You and your teams already know much more about the impact of last-mile deliveries than you did a year ago. Take a moment to document the last six months of experience by gaining insights from all involved in the process:

-Residents: What aspects of delivery are your residents asking (or complaining) about? Typical priorities are security, convenience, 24/7 accessibility, and adequate receiving space. Since COVID,  contactless solutions are at the top of the list. What else do your residents want?

-Staff: How are deliveries impacting your staff? Do you have enough temporary parking or are delivery trucks monopolizing the receiving dock or precious curbside front entrance? Are shelves and boxes ruining lobby ambiance? How are deliveries impacting efficiency or morale?

-Delivery Carriers: Reach out to the drivers and route managers at companies that deliver most frequently to your building—both national and local carriers. Talk to them about delivering to your property. Are other comparable properties on their routes handling deliveries differently? Do they have suggestions for your specific property?

2. Let the Data Drive: Go back to the basics to get ahead of this growing delivery tsunami. Work with your staff to create a process to identify, collect, and report the data you will need to make effective decisions about future package delivery. Here’s a get-started list:

Delivery 

-Package types, sizes, weight

-Packages per delivery and per 24/hours

-Pickup and delivery times/frequency

-Carrier information – Amazon, UPS, USPS, FedEx, DHL, independent carriers

-Local delivery information – Dry Cleaners, Grocers, Food Delivery

-Odd- and over-sized deliveries (skis to TVs)

-Perishables

-Returns, waste management, and recycling

Building Logistics and Demographics

-# of units, average # of residents

-Elapsed time between delivery notification and resident pick-up

-Delivery path: docks and bays, driveways, pathways, controlled access to building

-Mail and package handling

External Data and Information Sources

-Industry associations (property management, retail, and others) for benchmarks, best practices, and trends. Example: NMHC or NAA

-Industry consultants, suppliers or vendors

-Managers of comparable properties

3. Technology: E-commerce delivery giants reinvented the delivery industry from the 1960s on with technology. FedEx revolutionized time-sensitive and urgent delivery. Decades before the iPhone, UPS drivers broke ground with hand-held tablets. Amazon Prime takes first place in warehouse automation. Now, these companies are testing sidewalk robots, drones, and driverless cars. On the residence side, leading-edge property managers can apply technology to the “last mile” with software, smart locker solutions and access-controlled package rooms that deliver convenient and secure 24/7 access for their residents.

Plan for the Future

For properties receiving packages, many days already feel like Black Friday and Cyber Monday all rolled into one. From forecasts and consumer behavior, we can only expect deliveries of all types to increase. By utilizing interviews, data collection, and adding technology, property managers can build an effective and flexible package management strategy that will continue to scale into the future.

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Donna Logback is marketing director for Package Concierge®, the trusted provider of automated locker solutions for the modern world. By combining industry expertise and cutting-edge/leading technology, Package Concierge seamlessly automates package management for multifamily properties, student housing communities, retailers, and office buildings. As the only vertically integrated solution, Package Concierge® products are built in the USA and powered by proprietary software to deliver on security, design and functionality. With over 75 million package transactions, Package Concierge® collaborates with customers to address their evolving needs by optimizing operations and enhancing user experiences through its scalable smart locker solution. For more information, visit www.packageconcierge.com.

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3pls, Archives, Global Logistics, Global Trade Daily

How to Prepare Your Online Store for the Holiday Season During COVID-19

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We’re already getting super hyped for the holiday season. From delicate snowfalls to generous gift-giving to spending time with family and loved ones, it really is the most wonderful time of the year.

But if you work in retail, the holiday season can mean something VERY different. Many boutique owners find themselves busier than ever during the holidays. Most years, the holiday season means long lines at malls, loads of crowds, and tons of in-person sales. But this year’s going to be totally different.

Online stores have steadily grown in popularity over the years – but COVID-19 made the shift to e-commerce accelerate at its fastest ever rate. This holiday season will be totally dominated & led by e-commerce stores. Many believe the 2020 holiday season will be the single biggest e-commerce event in HISTORY.

If you own an online boutique, that’s great news for you! It means you’ll have the chance to capture all kinds of new and existing customers looking to buy gifts for their loved ones (and take advantage of the great deals for themselves, too). But it also means you’ve got to brace yourself. Things are about to get WAY busier.

Whether you’ve already made it through many a holiday season as a boutique owner before or this will be your first one, read on to learn how to prepare your online store for the holiday season during COVID-19.

Make it easy for your customers to buy online

Make sure you’re totally prepared to accept online orders – and that your website makes the online buying experience as soon as possible. Go through your online store as though you were a customer and make sure the entire buying process is crystal clear. Take a moment to work out any kinks you find so you can provide a seamless buyer journey. If this is your first time selling online, make sure payment solutions are totally ready by running a few test purchases.

Once you’ve done that, update your website for the holiday season. Update your inventory so in-stock items are clearly marked. Promote seasonal offers and holiday deals throughout your website. Clearly display your boutique’s shipping and return policies, especially if you’ve modified them for the holidays. The easier it is for your customers to make a purchase (and take advantage of awesome holiday deals), the more likely they’ll be to do so!

Plan & stock your inventory in advance

And by “in advance,” we mean ASAP! It’s always a good idea to start stocking up on holiday inventory early, but this year it’s more important than ever. Many shipments have been delayed due to the pandemic, so the sooner you can order your inventory, the better.

Make sure you choose to work with a reliable supplier. While the increase in high demand affects retailers like you, it also affects manufacturers, distributors, and wholesalers in a big way. Order early and choose a supplier with great customer service. Supplied is a great option for online boutique owners looking for a wide variety of wholesale boutique items, flexible payment terms, and free shipping (yes, even during the holidays!)

Schedule out promotions

Many customers pretty much expect great holiday promotions from the brands and boutiques they love. Start planning out what sorts of promotions you’ll run and when you’ll run them. Stagger promos and marketing efforts carefully so you have a flow of ongoing sales instead of a few huge peaks. It’ll make it easier for you to fulfill orders and provide great service.

With COVID-19, it’ll be difficult to predict exactly how long shipping times will take. To make it easier for you to ship items out well in time for the holidays, incentivize early buying with sales. Experts predict that Amazon’s October Prime Week will cause many buyers to purchase holiday gifts earlier than ever before. Consider offering a sale during it in an effort to pick up some of that traffic.

You’ll also want to make sure you take advantage of Black Friday. Many of the largest retailers have already announced that their stores will be closed for Thanksgiving weekend, meaning there will be far fewer in-person Black Friday doorbuster deals. Try and capture some of that excitement online by offering a great deal for Thanksgiving weekend.
Expect delays

During the 2020 holiday season, getting packages to arrive on your customers’ doorsteps on time will be tricky. Encourage people to buy early. Be transparent about shipping delays you’re aware of and do your best to manage your customers’ expectations. As tempting as it may be, don’t promise a delivery date you can’t guarantee.

Once the guaranteed holiday shipping deadline passes, offer virtual gift cards that can be instantly delivered and used towards any item in your shop. This provides a way for last-minute shoppers to still support your shop.

Prepare for fulfillment & delivery

A lot of online boutique owners are out there running a one-woman show – but during the holiday season, you might want some help. If you usually do shipping and fulfillment operations all by yourself, consider enlisting a friend or an employee to help with the busy season.

If you have a brick-and-mortar location or a lot of local customers, offer in-person pickup to allow customers to save on shipping costs – and to allow you to package and mail fewer orders!

To sum up – to prepare your online store for the holiday season during COVID-19, you’d best get started now. Start ordering wholesale boutique items now so you have plenty of time to prepare for any delays, update your inventory, schedule out promotions, and allow your customers to order their gifts as early as possible.

Supplied members enjoy up to 75% off of wholesale prices on over 100,000 wholesale boutique items. And with free shipping, flexible payment terms, and no minimum orders, it’s perfect for stocking up quickly in preparation for the holiday season. Become a member (it’s free!) and place your first order today.

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Joseph Heller is a small business expert and CEO of SuppliedShop.com. Supplied makes it easier for small boutique owners around the world to access high-quality, affordable wholesale boutique items, whether to stock their physical store or IG shop.

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Air Cargo, Archives, Global Logistics, Global Trade Daily, Ocean Carriers, Warehousing

How to Best Prepare for Current (and upcoming) Supply Chain Disruptions

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Weekly meal planning is a recurring event in our household. Although this activity is not particularly exciting, every Saturday my wife and I sit down to plan out our family meals. This process helps us avoid the mid-week supermarket scramble, as well as sidestep overspending on items we don’t actually need. Sound familiar? Supply chain planning is no different when it comes to yielding efficient results, especially this year.

It’s no secret the way companies ship their freight has shifted due to COVID-19. C.H. Robinson is great at helping customers secure capacity and optimize their global freight across our suite of service offerings as their needs evolve. Due to COVID-19 market changes, our global team of supply chain experts has spent extra time securing expedited less than container load (LCL) capacity for companies that can work with extra lead time. Another big change is how many ghost or charter flights are used to make up for lost capacity from the mass decline in global passenger travel.

However, COVID-19 is not the only event putting pressure on the freight market now. And with passenger travel not expected to recover until 2024, proactive solutions are needed to avoid current and upcoming disruptions.

Prepping for peak shipping season and new tech launches

When it comes to maximizing your global freight, it’s important to take seasonality into consideration. Peak shipping season for global air freight historically begins in October, and we’re already anticipating a busy peak season due to the unbalanced relationship between supply and demand. Even if air freight volumes were consistent or less than previous years, there is a lot less capacity to work with. Additionally, ocean shipping is experiencing a busy peak season now as companies prepare for the holiday shopping surge.

Consumers are also eagerly awaiting new technology releases—including the iPhone 12, Sony PS5, Xbox, and more. High priced commodities, like consumer electronics, primarily ship via air. And while consumer tech launches are not uncommon during the holiday season, the lack of passenger planes aren’t helping the situation this year. This, combined with the volume surge in other commodities related to peak shipping season and continued demand for personal protective equipment (PPE) creates a tighter market.

What can global shippers do to combat tight capacity?

The key is to remain flexible and remember it’s never too late to start planning. Although some items, such as technology, tend to move by air, global shippers can consider shifting other commodities to expedited LCL or expedited full container load (FCL) service to mitigate disruption and stay agile in a tight global freight market.

However, for those shippers that truly depend on air capacity, shifting modes isn’t always an option. So, while ghost flights were a reactive solution for many this past spring, C.H. Robinson took our own planning advice and proactively chartered weekly 747 cargo flights from China to the U.S. from October to November, as well as Europe to the U.S. until the end of the year. Capacity on a 747 cargo aircraft can hold up to five times more freight than an average ghost flight. And our global network of experts knew proactively purchasing that space was necessary as global shippers face peak season, PPE from Asia, and a recovering economy out of Europe. We’re already seeing this approach drive solutions for our customers.

Looking forward to COVID-19 vaccines

COVID-19 vaccines are on the horizon. Once one or more is available for global circulation, it will likely create a significant ripple effect throughout supply chains. Even if your company is not directly connected to distributing or manufacturing a vaccine, the time to start planning alternative modes or routes is now.

Like technology, vaccines primarily ship via air to monitor the temperature and deliver them to market quickly. According to IATA, 8,000 747 flights would be needed to distribute a single dose of the vaccine to 7.8 billion people around the world. Although a vaccine with this large of a global magnitude is new, we can get a sense of the supply chain reaction by looking back at the height of global demand for PPE. Throughout the spring we saw airlines, 3PLs, carriers, companies, and government agencies go above and beyond, working extra hours and expediting products in order to create and deliver PPE around the globe quickly. It’s likely we’ll see the same comradery with the vaccine—pulling manpower and capacity away from other shipping needs.

Although we know air freight will play a vital role in distributing vaccines, last -mile is also an important area companies and logistic professionals are planning for. Last-mile planning will be especially important in countries where road or manufacturing infrastructure may be underdeveloped. However, keep in mind whether your company is involved in vaccine distribution or not, it’s still likely your supply chain will be impacted by higher transportation rates or additional capacity constraints across modes.

Final thoughts

As the pandemic spread across the globe, we saw air cargo rates rise to unprecedented levels. Airlines and cargo operators continue to adapt quickly to this dynamic market. Now it’s time for companies to evolve, too. Never before has a balance between proactive planning and flexibility been so important.

Planning ahead and using forecast data can be the difference needed to turn a dysfunctional supply chain into a strong, agile one that is ready to face this volatile market. We know logistics can’t exist in a world of absolutes. This makes it difficult to prepare for today’s (and tomorrow’s) disruptions—or even to know where to begin. That’s where C.H. Robinson comes in. Utilizing our information advantage, you can rely on our people to bring you smarter solutions across your global supply chain. Reach out to one of our experts today to start the conversation.

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3pls, Archives, Global Logistics, Global Trade Daily

UPS, FEDEX, AMAZON, TARGET, WALMART AND BEST BUY ARE KILLING IT IN E-COMMERCE. HERE’S HOW.

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COVID-19 has sped up e-commerce adoption across all industries as many businesses emerge from the global pandemic battered and bruised. At the end of 2019, e-commerce represented 11.3 percent of total U.S. retail sales. This percentage inched up to 11.8 percent at the end of the first quarter of this year. For the second-quarter, some estimates suggest this percentage could double, at minimum, as businesses closed, and consumers stayed home because of COVID-19.

Indeed, while increased online sales is not a new phenomenon, the speed with which new generations of customers have gone online is and has led to a change in demand that is unlikely to reverse quickly according to McKinsey & Company’s latest COVID-19 Briefing Materials: Global Health and Crisis Response (June 1, 2020). McKinsey estimates that 20-60 percent more U.S. consumers are digital as a result of COVID-19. Stickiness of digital, localization, and selectiveness in spending are major trends that businesses will need to address as the pandemic alters the way business is conducted.

McKinsey also found that consumers are shopping online more and are more willing to switch across brands. This can be seen in one the biggest “winners:” groceries. According to Adobe’s Digital Economy Index, online groceries grew 110 percent in daily sales between March and April. However, there were delays in last-mile deliveries as companies including Amazon, Walmart and Instacart had to hire more workers to assist with the increased consumer demand.

In March, Amazon had to restrict non-essential shipments from third-party sellers and other retail vendors and focus on receipt, restocking and delivery of essential products that were most in demand. Meanwhile, Walmart touted not only its online store capabilities but also curbside pickup. The result was a strong first-quarter earnings for the period ending April 30 with comparable-store sales up 10 percent and e-commerce sales up 74 percent. Strongest sales were in food, consumables, health, and wellness.

Retailer Target also noted strong first-quarter sales. While comparable-store sales increased only 0.9 percent in its first-quarter ending April 30, e-commerce sales jumped 141 percent with 80 percent of e-commerce orders fulfilled in Target’s stores. Food and beverages rose over 20 percent, essential and beauty 10 percent, and home rose in the single digits.

As more workers work from home, electronics and furniture sales also increased. Best Buy noted in the eight days ending March 20, sales jumped 25 percent as customers purchased work-from-home-related items. As stores closed, online sales increased more than 250 percent, with half of those orders using curbside service available at most Best Buy stores.

For small parcel carriers including FedEx and UPS, the e-commerce volumes proved to be a boon. Both carriers have been preparing for rising e-commerce volumes by introducing such service offerings as seven-day deliveries, faster delivery times, later pick-up times, returns solutions, fulfillment solutions designed for e-retailers, alternative delivery pick-up and drop off locations and more. By all accounts, FedEx and UPS appeared prepared to handle the sudden e-commerce volume increases.

Just as the COVID-19 impact was being felt in the U.S., UPS noted in its first-quarter earnings that March volumes were 70 percent business-to-consumer (B2C) with April trending similar. FedEx also noted a similar trend with higher than usual B2C volumes.

The result was a sharp increase in residential volumes for both carriers and delays occurred. It should be noted that residential deliveries are typically more costly for FedEx and UPS versus business-to-business moves in which batches of parcels can be picked up and delivered at once.

A number of consumers took to social media to voice their frustrations and share photos of overflowing packages at carriers’ facilities. However, not only were carriers faced with higher than normal volumes, but they were also dealing with the coronavirus itself, affecting an unknown number of FedEx and UPS employees who would otherwise be sorting packages, loading and unloading delivery vehicles and delivering packages. Networks slowed as a result.

Having temporarily suspended all service guarantees and implemented international peak surcharges in March to handle a surge in international volumes, FedEx and UPS introduced new temporary peak surcharges to address the U.S. domestic situation.

UPS’s latest surcharges took effect on May 31 and addressed Residential, SurePost, and Large Parcels. Meanwhile, FedEx’s domestic temporary peak surcharges took effect on June 8 and addressed Residential for FedEx Ground and FedEx Express parcels, SmartPost, and Oversize Parcels for FedEx Ground and FedEx Express parcels. Keep in mind, these temporary peak surcharges are in addition to already existing surcharges and individual shipper’s contracted rates.

Besides surcharges, FedEx also capped some shippers’ volumes. This is a similar approach to what the carrier does during the holiday season if a shipper exceeds agreed-upon volume commitments. However, this is not the traditional holiday season and many shippers were caught off guard by this tactic. UPS also took a page out of their holiday season playbook and dispersed managers and supervisors across the U.S. to pitch in and help at sorting facilities and deliver parcels.

The rapid increase in e-commerce parcels seemed to catch FedEx and UPS off-guard and significantly impact their lower margin service, Residential. Moving beyond the COVID-19 crisis, e-commerce will play a bigger role in B2C as well as B2B. Businesses will utilize a number of creative ways to handle the last mile – curbside pickup, buy online, pickup in-store, residential, third party locations for pickup and delivery, and more. FedEx and UPS will need to work closely with customers to share capacity availability and concerns.

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John Haber is the founder and CEO of Spend Management Experts. With more than 25 years of supply-chain experience, John has helped some of the world’s leading brands drive greater efficiencies through their supply-chain operations while reducing transportation, distribution and fulfillment costs. He began his career at UPS, where he held various executive level positions in corporate finance and corporate strategy and was instrumental in developing profitability and costing models. He also managed the carrier’s National Accounts Profitability Group where he audited the pricing and profitability of UPS’ top customers. John’s finance background combined with decades of experience working with high-volume shippers enables him to offer unique insights on strategic supply chain planning, including distribution model optimization, transportation cost analysis and carrier contract optimization and compliance.

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Air Cargo, Archives, Global Logistics, Global Trade Daily

THAT BUZZING IS THE SOUND OF FREEDOM: THANK THE DEFENSE INDUSTRY FOR THE RISE OF DRONES IN LOGISTICS AND TRANSPORTATION

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The demand within the global drone logistics and transportation industry is rising at a stellar pace in recent times. The need for aviation and military drones has created a juggernaut of possibilities for growth within this market. Moreover, new applications of drones have come to the fore across several industries. This trend has paved way for increased investments to flow into the global drone logistics and transportation market.

That’s the conclusion of a recent review by Transparency Market Research (TMR), which decoded some of the leading factors pertaining to the growth of unmanned aerial vehicles (UAVs). According to TMR, the importance of aerial inspection of terrains for a multitude of industries has driven market demand. Technological enhancements in the structuring and functionalities of UAVs have additionally impelled demand.

The TMR review is not confined solely to logistics and transportation, as it also delves into the relevance of drones across military, aviation, construction and entertainment sectors.

Advancements in Military Technologies. The use of drones in the defense sector has gathered momentum in recent times. The need for increased surveillance and reconnaissance in the military industry has played to the advantage of the vendors operating in the global market. Increasing anarchy among regional territories has also generated humongous demand within the global drone market, which can therefore count on increased revenues in the years to follow.

Use of Drones in Site Inspections. The construction industry has become a haven of new possibilities and technologies. Drones are extensively used to oversee operations in that sector, with the need to inspect terrains and unexplored lands creating a boatload of possibilities within the market.

UAVs in Logistics and Transportation is Looking Up. Recent drone developments in the sector cited in the TMR review include:

-Rising investments in drones by the likes of Amazon, Walmart, Uber, Google, FedEx and UPS are ushering in technological advancements and design innovations.

-Drone strategies being employed by Uber Technologies Inc., Flirtey, Zipline International, Drone Delivery Canada and Matternet. When it comes to just the latter two, Drone Delivery Canada has agreed to serve Moose Cree First Nation communities, while Matternet and Boeing HorizonX Ventures have partnered in drone delivery as well.

-A Beijing-based online business firm, which since 2016 has operated under an agreement to deliver commercial drones in four main regions spread over China, being online to have built 150 drone delivery services in the southwestern Sichuan region by the end of this year.

-The same firm planning to expand to Japan and Indonesia.

-India’s Zomato, which took over the drone startup TechEagle, developing a hub-to-hub transportation service supported by hybrid multi-rotor drones.

The Bottom Line. The revenue index of the drone logistics and transportation market is projected to improve in the times to come. Learn more about this, including industry challenges, at: https://www.transparencymarketresearch.com/drone-logistics-and-transportation-market.html.

More Drone Developments. Speaking of UPS, the Atlanta-based delivery and logistics giant earlier this year announced a series of new initiatives and partnerships aimed at upgrading its global logistics network that includes the expansion of drone operations in the healthcare sector. An initiative to test drone delivery use cases with Henry Schein, a worldwide distributor of medical and dental supplies, will allow UPS to focus on UAVs for one of its key business sectors. A huge factor in these tests will be ensuring successful deliveries of essential healthcare products to destinations where traditional road transport may be less effective or timely, such as remote communities or areas impacted by a natural disaster, according to UPS.

The UPS Flight Forward subsidiary drone business, which was only formed last year, received a highly-restricted air carrier certification from the Federal Aviation Administration (FAA) that allows for approved UPS drones to fly over people, at night and out of the operator’s line of sight. After granting UPS Flight Forward the special certification, the FAA authorized the company to operate a drone delivery program at WakeMed Hospital in Raleigh, North Carolina. Meanwhile, UPS in February expanded its Flight Forward service to the University of California at San Diego Health. That’s the result of another Mountain View, California-based Matternet partnership. That drone program will be used to transport various medical products between health centers and labs, with the drones following predetermined flight paths within visual line of sight per FAA rules. (Matt Coker)

Thank the Military Again. Yates Electrospace Corp. (YEC), whose Silent Arrow platform is bringing disruptive innovation to the heavy payload, unmanned cargo delivery market, announced the design completion and specifications of a wide-body version of its successful GD-2000 cargo delivery drone. With a full-scale, flight-ready version of the latter having been shown off at the Defense & Security Equipment International show in London in September 2019, the coming out for the GD-2000’s bigger sister is set for the July 20-24 run of the Farnborough International Airshow in the UK (coronavirus willing, of course).

Aliso Viejo, California-based YEC responded to real-time demand from U.S. and allied foreign government Special Operators, including the U.S. Army 160th Special Operations Aviation Regiment (SOAR), for the development of the new wide-body craft. It will be 60 percent larger than the standard Silent Arrow GD-2000, with a  2,000-pound gross weight; a 48-foot wingspan (among four spring-deployed wings that are stowed in a 3.5×3.5×13-foot fuselage); and a 140-cubic-foot cargo bay that can handle up to 1,250 pounds (or five times more weight in life-saving supplies, medicines and tactical cargo than the GD-2000).

“The YEC engineering team used current flight data from the inaugural GD-2000 product line along with extensive computational fluid dynamics analysis to optimize the aerodynamics and glide ratio of this rather massive cargo delivery platform,” says Chip Yates, YEC’s founder and CEO, who noted an accelerated schedule led to the delivery of development units by the end of this past March and the setting of 10 flight test units throughout the second and third quarters of 2020. Don’t be surprised if Yates’ latest creation is a hit: The original Silent Arrow was named one of six “Unmanned Cargo Aircraft to Watch” by Aviation Week & Space Technology magazine in their 2020 Aerospace & Defense issue. (MC)

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Air Cargo, Archives, Global Logistics, Global Shippers 101, Global Trade Daily

Is your Ecommerce Caught Between Delivery Delays and Voided Service Guarantees? Strategies to Survive this Situation.

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The pandemic has disrupted ecommerce businesses in unique ways. While a few ecommerce stores went bust, others doubled their revenue overnight. Regardless the parcel volumes continue to soar. The parcel volumes are so high that even major shipping carriers like FedEx and UPS are overwhelmed. For example, FedEx alone saw a 35%-40% increase in B2C deliveries. An unprecedented rise in shipments has forced both the carriers to resort to undertaking stringent actions.

Carriers Suspend Service Guarantees

FedEx and UPS have suspended money-back guarantee for ground and priority services. Let’s take a minute to understand what this means for merchants. An escalation in order volumes directly impacts the carrier’s on-time delivery performance. It is almost a given that merchants will experience a minimum of 20% increase in delays. An explosion in sales, impatient customers, and shoddy delivery experience. Add to it, COVID uncertainty and unaccountability resulting from voided service guarantees. Sounds like a disaster in the making?

When delays are imminent

With the growing volume of residential deliveries clogging their network, carriers may redirect traffic to relieve congestion. Suspension of guarantees also means that FedEx or UPS can switch your priority shipments to lower-cost ground mode without notice. Expect more delays for overnight and priority shipments. While you pay for a premium service there is no way you can hold carriers accountable.

Watch out for COVID-19 Surcharges

In order to mitigate the strain on their delivery network, UPS followed by FedEx has come up with peak volume surcharges. A $30 surcharge as additional handling charges and $0.40 for services like FedEx SmartPost or UPS surepost. But the surcharge that retailers must be most concerned about is the residential area surcharge. A surcharge of $0.30 will be levied on all orders that are to be delivered to residences.

Strategies to survive

The disastrous combination of delivery delays and rising shipping costs can ruin your sales revenue. It is crucial to take steps to mitigate the impact of COVID on your shipping costs as well as customer experience.

Here are a few strategies to follow:

1. Re-negotiate your shipping contract: UPS or FedEx can’t spring a surprise charge. Especially during these trying times. Work through your shipping profile to figure out the impact of these charges on your costs. Negotiate with your FedEx or UPS rep and draw up a special contract for the COVID situation.

2. Consider charging for order delivery: Free and fast delivery has been your brand’s USP. However, if including a shipping fee helps your business stay afloat, don’t shy away. Don’t let the additional surcharge eat into your profit margin.

3. Delays should not deter you: Factor in for delays while revisiting the estimated date of shipments on your shipping page.  Communicate well in advance to your customer support team. Mention the changes to delivery times due to COVID On your home page.

4. Over-communicate with your customers: Let your customers know at all times where their package is. Stay on top of your orders at all times. Act quickly in case of a delivery exception.

5. Audit your invoices: Businesses are slashing all the excess spending. As for ecommerce, you should start by auditing your shipping invoice. It is more critical than ever to examine each and every line item on your invoice. This can help you save 10%-12% of your shipping costs.

The peak volume surcharges and service guarantee suspension are supposedly temporary. When things go back to normal, FedEx and UPS are likely to reinstate these service guarantees. However, with no clear timeline in businesses must prepare to navigate the status-quo as long as it lasts.

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Simon Perkins is a Shipping Cost Management expert at AuditShipment.com, a real-time parcel monitoring and AI-powered audit service that provides businesses with deep shipping intelligence and actionable cost recovery insights.

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National Returns Day Anticipated with 26% Increase

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‘Tis the season for giving and returns. UPS released information today confirming National Returns Day will return with a vengeance, as seen over the last seven years of year-on-year increases. According to the report, an estimated 1.9 million returns in the form of packages are expected. This number represents a 26 percent increase from last year’s National Returns Day.

“For retailers, a seamless returns process is essential to keeping and growing business,” said Kevin Warren, UPS chief marketing officer. “We proudly offer businesses of all sizes – from global players to small and medium-sized merchants – the sophisticated returns services that today’s consumers demand.”

As part of its Pulse of the Online Shopper study, UPS confirmed that the returning process plays a major role in their likelihood of using a retailer again. In fact, 73 percent of online shoppers confirmed the returns experience impacts potential business.

As e-commerce continues to establish its position in consumer patterns, UPS stays one step ahead of the trends by offering a plethora of fast, reliable, and convenient delivery (and return) options for consumer products. Among these options include the 14,000+ UPS Access Point® locations found at UPS Access Point® locations found at Michaels, Advance Auto, CVS Pharmacy and The UPS Store® locations and the 36,000 drop boxes for smaller packages.

Additionally, UPS customers have an added option of having a UPS driver come to them as long as a return label is ready to go. UPS boasts a network of over 4,800 locations fully equipped and ready to assist customers with all of their full-service packing, shipping and return needs.

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UPS Celebrates Veterans this Holiday Season

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UPS confirmed in an announcement this week that the company will be participating in this year’s Wreaths Across America at Arlington National Cemetery, aiding in providing support for the nonprofit’s annual wreath-laying and 2.5 + mile-long parade honoring our nation’s veterans. More than 50,000 wreaths are expected to be delivered and placed at the Arlington National Cemetery. This year’s Honor Trailer will transport the wreaths via vehicle and driver provided by UPS.

“Veterans bring an incredible wealth of experience and commitment to working together to achieve objectives,” said Lloyd Knight, Senior Director at UPS Supply Chain Solutions, Chairman of the UPS Veterans Steering Council, President of VETLANTA and Air Force veteran.

UPS is no stranger when it comes to supporting our nation’s heroes as seen with the original UPS Veterans Business Resource Group chapter close to a decade prior. To this day, 23 chapters exist for its employees in addition to the 299,000 volunteer hours invested by UPS employees and $7.1 million has gone towards veteran initiatives over the last few decades.

“These qualities are critically important to our company, and to our communities. Honoring those who have served, and helping to provide a pathway for their continued journey, are among the ways we can express our gratitude for their service,” Knight concluded.

This year’s Wreaths Across America takes place on December 14th and includes additional veterans-focused locations (including schools) in Maine, Massachusetts, Connecticut, New Jersey, Delaware, Maryland and Washington D.C. To learn more about the event and UPS participation, visit the UPS press room.

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UPS: “This Holiday Season, We’ve Prepared Like Never Before.”

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Today marked the first day of the peak holiday season for 2019 and the beginning of increased holiday shipments and deliveries. UPS confirmed a 5 percent increase in package shipments from 2018 record is expected in addition to an estimated 32 million packages and documents per day during peak season, primarily stemming from UPS’s retailer and B2B-focused customers. This anticipated chaos doesn’t seem to be a problem for UPS, however.

“This holiday season, we’ve prepared like never before,” said UPS Chairman and Chief Executive Officer, David Abney. “UPS has invested billions in our facilities, our air fleet and our workforce.  We have the capacity for, and are committed to, serving the unique needs of all our customers. To our customers, I simply say: We’re ready, Let’s go! You can count on us to help you make the holiday season successful.”

UPS has prepared resources in the form of added space (five million square feet of highly automated facilities, to be precise), automated superhubs, 11 newly added aircraft (increasing payload by 2.5 million pounds), optimization technologies, and a robust employee network close to 100,000 seasonal workers.

“More than ever, the 2019 holiday season proves UPS puts customers’ needs first,” said UPS Chief Marketing Officer Kevin Warren. “That starts with eliminating residential peak season surcharges, and extends into a wide range of new services that complement our industry-leading portfolio of offerings.”

Additional service enhancements have also been added to further support the growing demand, including the fastest ground-service offerings to-date, commercial/residential weekend services for pickup and delivery for customers in the top metro areas, late-night pickups via UPS Extended Hours® to qualifying customers, and more.

“We have the right strategies in place to help our customers make the most of the holiday season, with extensive forecasting, expanded ground and air capacity, effective onboarding to bring an army of seasonal employees up to speed, and the products and services that help all our customers meet high expectations this time of year,” Abney said.  “We look forward to another successful peak season.”