High parcel demand means another year of 'firm pricing' for UPS - Retail Dive
Dive Brief:
Dive Brief:
- Parcel carrier capacity is expected to remain tight in 2022, UPS CEO Carol Tomé said on the company's earnings call Tuesday, which would allow carriers to maintain their pricing power as shippers continue to fight for limited space in delivery networks.
- "The small package market is expected to grow about 5% in 2022," Tomé said. "There is additional capacity being added, but not enough. That's going to create surplus. So the environment supports firm pricing as we look to 2022."
- To better balance sortation capacity with delivery capacity in its own network, UPS plans to launch 30 delivery centers and two "automated hub projects" this year, CFO Brian Newman said. The company is also enhancing its weekend service to further free up space.
