Coyote logistics going up for sale?

Read that yesterday. Be a lot cooler if it was up for demolition.

 

Was thinking this yesterday........why don't they stick with what they do best? They've burned a ####ton of money trying to do something that they know nothing about. And it's 100% never worked out.

 

UPS isn't immune to this. Remember that Convoy was started by Amazon start up types and they kept expecting throwing money at the problem would solve their problems.

 

UPS layoffs 2024: What to know about 12,000 job cuts


making lots of big decisions lately over at UPS

 

Coyote is/was a shell company for UPS to subcontract feeder work away from hourly employees to keep costs/sleeper job creation down & occasionally have the ability to save last minute breakdown/late loads.

If they used it for outside work, that is just one of many experiments that UPS conducts to diversify/stay ahead.

They have a similar company for delivering parcels for the same reasons.

New contract tightened restrictions on using contractors for feeder work.
Combine this with feeder/sleeper guys that have been getting laid off/bumped into lower pay/less desired positions since early 2023 have finally started realizing that it is affecting them/their paychecks directly & have been filing constant grievances on contractors working for months now.

Less about saving money if you are paying contractors plus your own employees to sit around for their 8hrs saying there is no sleeper work & give them a chance to file on supervisors working on top of it.

Specific layoffs mentioned are all management positions worldwide, not hourly non-management workers.
Regardless, this is the slow time of year anyway & volume is way down with a lot of newly converted package car drivers from 22.4s that will have to work the warehouse - temporary layoffs for them, vs permanent for management 'layoffs.'

On top of that, very poor 2023 peak showing with a lot of unnecessary hiring of extra help in preparation for volume that never materialized, plus significant contract raises across the board & significantly larger Central/Southern area pension payouts trying to get older lifers out/bring FT pension "closer" to parity with East & West coast contracts.

Peak used to be the moneymaker for drivers, now it's the easiest time of year & usually make less money then the rest of year unless you have an unusual route...

From the management caucuses I have overheard recently, I gleaned that corporate is shooting for hiring more bargaining unit workers to cut OT across the board while satisfying new FT job creation requirements in 2023 contract. This, combined with cutting management (again) as much as possible.

We already had a manager & several full time sups forced out in the first round of cuts Q3/Q4 last year - as always, management has no job security & will be asked to do more with less resources.

They seem to be shooting for AI/automation to run feeder dispatch/yard control from the looks of how quickly the department is shrinking.

 

I was always good for a couple of loads per month from them and could occasionally find something good with a great rate.

Last few months their rates have been pure garbage..On top of that a lot of their loads have insane carrier requirements. Like 750 load volume, lol. Makes me laugh when I see loads paying $0.80 per mile that I don’t qualify for.

For me I just don’t look into the Coyote dumpster anymore.

 

I wonder how much Amazon having their own fleet of cheap parcel delivery and truckers affects UPS, and FedEx? That's not a small thing. So UPS had a poor 4th quarter in 2023? Amazon never has a down 4th quarter. Amazon is a legitimate threat to UPS and FedEx and I hate to see it because those are good paying driving jobs and Amazon is not.

 

They did have significant slowdown in late 2022/2023 compared to COVID years like everyone else, which put on hold/cancelled many distribution centers that had been planned/started.

They are the new hot thing on the market, but that which is built quickly often breaks quickly as well.

Only thing that will always bail them out is the ridiculous revenue from Amazon as a company.

They still ship a hella lot with outside carrier even during this slow part of the year...

 

Their bad third quarter doesn't equal to most companies, let alone normal people's, bad 3rd quarters. So they delayed building some new DC's? Oh lordy, I'm sure Jeff Bezos is losing sleep over that.... It's a normal business cycle for them. The expansion and world domination plans may be slowed down a little but I promise you they go will forth as figured regardless of this speed bump. And you're badly mistaken if you think Amazon was built quickly. It wasn't.