October 23, 2026 admin

UPS automates 4 additional facilities ahead of peak shipping season


Seasonal hiring, RFID technology also expected to help with higher demand

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UPS automates 4 additional facilities ahead of peak shipping season

BY ERIC KULISCH · AMERICAN SHIPPER · OCTOBER 22, 2026

UPS converted four more conventional sortation centers in Denver, St. Paul, Syracuse and Portland to automated operations as it heads into peak season with 100,000 seasonal hires and a growing RFID rollout.

THE TAKE — With 68.5% of U.S. volume now flowing through automated facilities and cost per piece about 28% lower than in conventional sites, the network overhaul is delivering the efficiency UPS promised as it targets roughly $3 billion in annual savings by 2028. The human cost is real, with 30,000 positions eliminated alongside the closure of 200 manual sort facilities over five years. Peak will be the first big test of whether automation and RFID tracking can absorb surging volume without service slips.
 
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Fulfillment

Late, short deliveries cost food and CPG makers $100 billion

Supply chain software company Cleo estimates missed on-time, in-full deliveries cost U.S. and Canadian food and CPG makers about $100 billion a year, most of it in indirect losses like shelf space.

THE TAKE — Only $10 billion to $11 billion of the total is direct cost such as chargebacks and expedited freight; the other $85 billion to $90 billion is lost shelf space and smaller retailer orders, which is where the real damage sits. Retailers like Walmart demand 98% OTIF while many manufacturers run 85% to 91%, a gap that explains the fines. The figure is a model from a company that sells chargeback-prevention software, so treat the headline number as directional.
 
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Rail

First look: Union Pacific earnings

Union Pacific’s third-quarter profit rose 16% to $2.08 billion, with intermodal volume up 11% and adjusted earnings of $3.53 per share topping the $3.47 consensus.

THE TAKE — Intermodal revenue climbing 27% to $1.52 billion on an 11% volume gain shows where the growth is coming from, and 6% carload growth gives the railroad volume momentum heading into 2027. Higher fuel prices added 140 basis points to the operating ratio, which masks otherwise steady cost performance. CEO Jim Vena also pointed to upcoming steps in the Surface Transportation Board’s review of the proposed Norfolk Southern merger.
 
Norfolk Southern freight train

Rail

Norfolk Southern profits rise on higher volume and revenue

Norfolk Southern posted record third-quarter revenue of $3.52 billion, up 14%, with operating income up 5% to $1.15 billion and earnings per share up 7% to $3.37.

THE TAKE — Fuel surcharges drove 8 of the 14 points of revenue growth, so underlying growth is more modest than the headline suggests, and the 67.4% operating ratio worsened on higher fuel costs. Service metrics are the bigger flag: intermodal service composite fell to 84% from 92% a year ago even as the accident rate hit a record low. Volume growth of 3% across merchandise, intermodal and coal is steady but not spectacular.
 
CSX freight train

Rail

CSX profit jumps on volume and revenue growth

CSX reported record third-quarter revenue of $4.02 billion, up 12%, with operating income up 44% to $1.57 billion and a 60.9% operating ratio, an 8.8-point improvement.

THE TAKE — A big share of the jump comes from comparing against a one-time goodwill impairment a year ago; excluding it, operating income rose 25% and EPS 30%, still strong. CSX raised its revenue growth outlook to high single digits, but trip-plan compliance fell 10 points in both intermodal and carload and terminal dwell rose 12%. CEO Steve Angel acknowledged the network can perform better.
 
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This week on American Shipper TV: how UPS automation is preparing for peak season, and what third-quarter earnings from the major railroads say about freight demand. Watch the full segment →

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