UPS Strike Could Have Ripple Effect On Inflation, Supply Chains: 3 Potential Risks To Watch
Portfolio Pulse from Piero Cingari
United Parcel Service Inc. (UPS) is in talks with the International Brotherhood of Teamsters for a renewal of its union contract, affecting around 340,000 workers. A faction within the union is threatening to go on strike as early as Aug. 1. The strike could have serious consequences for the logistics industry, inflation, and the stock market. UPS handles approximately 28% of the 75 million packages delivered throughout the United States daily. The top UPS client is Amazon.com Inc. (AMZN), which accounted for nearly $11 billion of UPS’ total revenues of $100 billion last year.
July 21, 2023 | 3:53 pm
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NEGATIVE IMPACT
As the top client of UPS, Amazon could face disruptions in its package deliveries if a strike occurs at UPS.
Amazon, being the top client of UPS, could face disruptions in its package deliveries if a strike occurs at UPS. This could potentially affect Amazon's operations and stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 80
NEGATIVE IMPACT
A potential strike at UPS could disrupt its operations, affecting its revenues and stock price.
A strike at UPS could disrupt its operations, leading to a decrease in revenues and potentially affecting its stock price.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100
NEUTRAL IMPACT
FedEx could face increased demand and pressure if a strike occurs at UPS, potentially affecting its operations and stock price.
FedEx, being a competitor of UPS, could face increased demand and pressure if a strike occurs at UPS. This could potentially affect FedEx's operations and stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70