The data is in from the past year and it tells a chilling story of how FedEx and UPS added significant profits to their bottom line, while small businesses struggled under the weight of the global pandemic.
Initial figures from both carriers’ financial reporting indicate that the pandemic was very good for businesses, with FedEx Profits nearing $50.76 Billion and UPS $67.5 Billion. On the other hand, a comparison of small businesses from 2019 and 2020 showed fewer small businesses made a profit. Certainly, many small businesses were crushed under the weight of the pandemic, the closing of our economy, and the loss of skilled workers. When consumers and other businesses shifted their buying behaviors online, it didn’t help that FedEx and UPS heaped on surcharges and additional fees, cutting profitability and margins.
The carriers continue to take aggressive steps to maximize profits and, more than ever, businesses need to actively manage their parcel agreements and maximize their contract negotiations.