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<\/figure>\n\n\n\nIf the United Parcel Service (UPS) strike goes ahead on Aug. 1, U.S. supply chains will see significant disruptions. But even though these events are taking place south of the border, it\u2019s a good cautionary tale for Canadian shippers as well to be prepared in the event of such disruptions.<\/p>\n\n\n\n
How? By diversifying your carrier mix to mitigate exposure to single-carrier disruptions and capacity restraints.<\/p>\n\n\n\n
For example, the most vulnerable UPS shippers are those without alternative carriers in place to handle diverted packages, experts say. It gets even harder if they don\u2019t have enough volume and financial muscle to compel other carriers to make extra room in their networks at the last minute.<\/p>\n\n\n\n
\u201cIf I\u2019m in a logistics professional\u2019s shoes right now that\u2019s sourced with UPS, I\u2019m doing everything I can for the next couple of weeks to get something in place to ensure I\u2019ve got a way to deliver packages to my customers,\u201d said Trevor Outman, founder of Shipware.<\/p>\n\n\n\n
Diverting packages to other carriers will ensure your goods still get to their destination on time in the event of a service disruption \u2013 that is, if the other carriers still have capacity.<\/p>\n\n\n\n
According to Supply Chain Dive, carriers generally have capacity to spare as delivery demand has cooled from its pandemic-driven heights. However, Michael Foy, director of business development at Inmar Intelligence, said FedEx and other carriers will limit how much diversion activity they\u2019re willing to accept. Volume shifts will be easier for shippers that have existing business with UPS competitors.<\/p>\n\n\n\n
\u201cYou can\u2019t just all of a sudden start getting contracts in place in the next three weeks \u2014 it\u2019s nearly impossible,\u201d Foy said. \u201cBut, if you\u2019re a retailer and you\u2019ve got 70% of your business with UPS, maybe 10% with a regional carrier and 10% with the Postal Service, then you have a little bit more leverage.\u201d<\/p>\n\n\n\n
\u201cIf you\u2019re 99% UPS [deliveries] and it\u2019s the week before the strike, you don\u2019t have a lot of options.\u201d<\/p>\n\n\n\n