The Amazon Prime and UPS trucks are seen in the building in Washington DC, the United States, July 12, 2024.
Jakub Porzycki | Nurphoto | Getty Images
Stocks United Parcel service reduced more than 17% on Thursday after the company issued weak revenues for the year and said it was planning to reduce delivery for AmazonHis biggest buyer, for more than half.
Said the ship’s giant in his earnings on the fourth quarter that “in principle he reached an agreement with his greatest customer to reduce his volume by more than 50% to the second half of 2026.”
At the same time, UPS said he reconfigured his American network and launching many years of efficiency initiative, which he expects to result in savings of about $ 1 billion.
UPS Executive Director Carol said at the invitation with investors that Amazon is the biggest customer of the UPS, but this is not the most profitable buyer of the company. “His margin is very diluted with the American domestic business,” she added.
“We make business and operational changes that, together with the fundamental changes we have already made, will bring us down on the path to become more profitable, more agile and differentiated climbing in the best parts of the market,” “he said in a statement.
Amazon spokeswoman Kelly Nantel told CNBC in a statement that the UPS requested a reduction in volume “because of its operational needs.”
“We definitely respect their decision,” Nantel said in a statement. “We will continue with them and many other carriers who will serve our customers.”
Before the announcement, Amazon said he offered an increase in the amount of UPS.
UPS forecast 2025. A revenue of $ 89 billion, which is a $ 91.1 billion revenue drop in 2024. This is significantly below consensitive assessment for 2025. A revenue of $ 94.88 billion, according to analysts who surveyed LSEG.
In the fourth quarter, the UPS missed the revenue, reporting US $ 25.30 billion compared to $ 25.42 billion analysts scheduled in LSEG research.
Amazon relied for a long time on a mix of major shipping carriers including UPS, Fedex and the US Postal Service. But this has reduced the number of packages sent through UPSA other carriers in recent years, as it seems to have more control over delivery.
Amazon has since quickly built his own logistical empire Vacation in 2013 He left his packages stranded in the hands of external brackets. The company now oversees thousands of shipping companies in the last kilometers that deliver packages exclusively for Amazon, as well as an internal network of aircraft, trucks and ships. According to some estimates, Amazon’s internal logistical surgery grew into a rival or exceed the size of the main carriers.
The UPS, for its part, has taken more aggressive measures to control costs, including catering for a more cost -effective customer customer. In the recent neighborhoods of the UPS had benefited From the appendix volume from the seller with the sellers of the topic and Shein, who have quickly gained popularity in the US
Last January, Oops 12,000 employees dismissed As part of the offer to save costs of $ 1 billion.
