In a recent earnings call, UPS Chief Executive Carol Tomé addressed rival FedEx's claims of gaining market share, stating that UPS had successfully won back and recovered almost 60% of the volume that was diverted during labor negotiations. This suggests that FedEx's assertions may not hold true.
The labor negotiations between UPS and the Teamsters union, which Tomé referred to as "late and loud," had caused more customers than anticipated to look elsewhere for shipping services. This situation had granted FedEx an opportunity to snatch a portion of UPS's market share, according to FedEx Chief Customer Officer Brie Carere.
During FedEx's conference call in December, Carere was asked if FedEx was able to maintain all the share it had taken from UPS. She confidently affirmed that they indeed were. However, UPS CFO Brian Newman countered these claims by highlighting the company's impressive efforts in the U.S. domestic business. Their strategies to reclaim lost volume and attract new customers led to a remarkable surge in volume, setting a new record.
In the fourth quarter, UPS reported a domestic-package volume of 22.45 million units, representing a 30% increase from the previous quarter. On the other hand, FedEx reported an average daily domestic-package volume of 2.69 million units for the quarter ended on November 30, slightly higher than the previous quarter.
Despite UPS's achievements, their stock experienced a decline of over 7% in afternoon trading after their fourth-quarter revenue and 2024 outlook fell short of expectations on Wall Street. However, UPS shares have outperformed FedEx's stock over the past three months, with a gain of 5.3% compared to FedEx's 3.3% increase during the same period.
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