Truck Driver Shortage Drives Up Freight Labor Costs

Truck Driver Shortage Drives Up Freight Labor Costs

According to the American Trucking Associations, the driver turnover rate at large truckload carriers surged to 92% in the third quarter, while smaller carriers reached 74%. Less-than-truckload (LTL) remained relatively stable at 14%. This high turnover reflects challenges in the freight market, including driver shortages and increased competition. Companies need to actively address these issues to ensure supply chain stability and mitigate the impact of driver attrition on their operations. Addressing driver retention is crucial for maintaining service levels and profitability in the current environment.

01/21/2026 Logistics
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FAA Reauthorization Delay Sparks US Aviation Industry Concerns

FAA Reauthorization Delay Sparks US Aviation Industry Concerns

The US FAA authorization bill has been extended for the 15th consecutive time, creating uncertainty for the aviation industry. The core dispute revolves around labor provisions, sparking a fierce battle between FedEx and UPS. This ongoing extension hinders investment, slows innovation, increases safety risks, and diminishes international competitiveness. Breaking the deadlock requires a collaborative effort from Congress, airlines, unions, and the government. The goal is to ensure aviation safety, promote fair competition, and lay a solid foundation for the industry's future development.

01/21/2026 Logistics
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UPS Teamsters Strike Deal to Raise Wages Avoid Walkout

UPS Teamsters Strike Deal to Raise Wages Avoid Walkout

UPS and the Teamsters have reached a tentative five-year agreement, averting a potential strike. The agreement includes historic wage increases, wage improvements for part-time employees, and improved working conditions. However, the agreement is still subject to approval by union members. The agreement may lead to higher shipping rates and have a significant impact on the market. This deal addresses key concerns raised by the Teamsters, focusing on worker compensation and quality of life while working for UPS. The ratification vote will determine the final outcome.

01/21/2026 Logistics
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UPS Strike Threatens Supply Chains As Contingency Plans Emerge

UPS Strike Threatens Supply Chains As Contingency Plans Emerge

UPS and the Teamsters' labor negotiations have stalled, increasing the risk of a strike. UPS has initiated contingency plans to address a potential work stoppage. The Teamsters are demanding higher wages, improved benefits, and better working conditions. A strike could disrupt supply chains, increase transportation costs, and slow economic growth. Businesses and consumers need to adopt alternative solutions and coping strategies. Both parties need to negotiate rationally to avoid a strike and maintain economic stability.

01/21/2026 Logistics
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UPS to Add Air Conditioning to 5000 Delivery Trucks

UPS to Add Air Conditioning to 5000 Delivery Trucks

UPS is actively advancing its labor agreement with the Teamsters, including the installation of air conditioning in 5,000 existing delivery vehicles and testing cargo area air conditioning. This initiative aims to improve the working conditions for frontline employees and address the challenges posed by high temperatures. Despite previous friction between the two parties regarding network restructuring and other issues, the progress on this air conditioning plan demonstrates a shared commitment to improving employee welfare. This represents a significant step towards creating a safer and more comfortable environment for UPS workers.

01/21/2026 Logistics
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UPS Adds Air Conditioning to 5000 Delivery Vehicles for Workers

UPS Adds Air Conditioning to 5000 Delivery Vehicles for Workers

UPS is actively implementing its labor agreement with the International Brotherhood of Teamsters, planning to install air conditioning in 5,000 existing delivery vehicles and testing cargo bay air conditioning systems to improve driver working conditions. This initiative represents an upgrade to employee benefits, aiming to create a more comfortable delivery environment and enhance employee satisfaction. Simultaneously, UPS is undertaking network restructuring to optimize operational efficiency and adapt to market changes. This combined effort demonstrates UPS's commitment to both its workforce and its business strategy.

01/21/2026 Logistics
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UPS to Add Air Conditioning in Delivery Trucks After Labor Deal

UPS to Add Air Conditioning in Delivery Trucks After Labor Deal

UPS plans to install air conditioning in 5,000 delivery vehicles to improve working conditions for its drivers. This initiative is part of a labor agreement reached with the Teamsters union, aimed at providing better heat protection for drivers. While UPS's relationship with the union hasn't always been smooth, with disputes over network restructuring and employee separation plans, the company is working to enhance operational efficiency and provide better service to its customers. This investment in driver comfort is a step towards improving employee relations and overall service quality.

01/21/2026 Logistics
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UPS Teamsters Agree to Add AC to 5000 Trucks Amid Heat Risks

UPS Teamsters Agree to Add AC to 5000 Trucks Amid Heat Risks

UPS and the union have reached an agreement to install air conditioning in 5,000 existing delivery vehicles in the hottest regions and test cargo area air conditioning. This initiative aims to protect employee health and is a significant advancement in their five-year labor agreement. The union emphasizes that it will monitor the retrofit progress to ensure frontline employees receive the cooling protection they deserve. This agreement addresses concerns about working conditions and prioritizes the well-being of UPS drivers during extreme heat.

01/21/2026 Logistics
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East Coast Gulf Ports Ratify Sixyear Labor Pact to Avoid Disruptions

East Coast Gulf Ports Ratify Sixyear Labor Pact to Avoid Disruptions

A six-year labor agreement has been reached at 36 ports along the US East and Gulf Coasts, ensuring wage increases and automation protections, bringing stability to the supply chain. This collaboration between the International Longshoremen's Association and the United States Maritime Alliance avoids the risk of strikes while laying the groundwork for port modernization and future development. This agreement is crucial for maintaining smooth operations and preventing disruptions in the vital maritime transportation network.

01/21/2026 Logistics
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East Coast Gulf Ports Ratify Sixyear Labor Pact on Wages Automation

East Coast Gulf Ports Ratify Sixyear Labor Pact on Wages Automation

The International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) have signed a new six-year contract covering 36 ports on the U.S. East and Gulf Coasts. The agreement guarantees record wage increases for dockworkers and provides effective protections against automation, averting potential supply chain disruptions and laying the groundwork for port modernization. The contract was overwhelmingly approved by ILA members and welcomed by the National Retail Federation (NRF).

01/21/2026 Logistics
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