UPS-Amazon Volume Glide-Down

The glide-down shows a major carrier trading volume for margin, and it has shifted UPS toward higher-value small and midsize business, healthcare, and B2B shipments. UPS announced the plan with its fourth-quarter 2024 results, saying Amazon, about 11.8% of its 2024 revenue, was its largest but not its most profitable customer. UPS has closed facilities and cut jobs while targeting about $3 billion in 2026 savings tied to the change. For brands, the shift means UPS is courting non-Amazon shippers, which can create room to negotiate rates, while Amazon moves more of its own volume onto its own delivery network.

• Negotiated RatesContract discounts off carrier list prices
• Regional CarrierParcel carrier that serves one region
• Multi-Carrier Shipping SoftwareOne tool for labels from many carriers

• Amazon Becomes Largest U.S. Parcel Carrier2022 · Amazon Logistics passes UPS in US parcel volume
• 2023 UPS-Teamsters Contract2023 · A five-year deal for 340,000 workers averts a strike
• Amazon Ends FedEx Contracts2019 · FedEx drops its express and ground deals with Amazon

1. UPS slashing Amazon volume by 50% in push for profitability (FreightWaves) freightwaves.com
2. UPS Amazon volume reduction (Supply Chain Dive) supplychaindive.com
3. UPS sees higher profits in 2026 from network, Amazon downsizing (FreightWaves) freightwaves.com