THE DAILY

Monday, April 6, 2026

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The Daily

UPS caps driver buyouts at 7,500 after Teamsters force seniority-based deal

The tug-of-war over UPS driver buyouts is over, and the Teamsters got most of what they wanted. The cap is 7,500 drivers, the selection is seniority-based, and UPS cannot offer another severance program for the life of the current contract.

The agreement, announced late Sunday, resolves a dispute that escalated after UPS sent initial offer letters to roughly 105,000 long-haul feeder and package car drivers in late February. Each buyout carries a $150,000 severance payment. The Teamsters challenged the program through federal court and the national contract’s grievance mechanism, arguing UPS was dealing directly with workers over job status. When UPS pulled the buyout option from 13 central states on March 24, the fight sharpened.

Buyouts now reopen nationwide, but with guardrails. Seniority governs selection, meaning the highest-paid drivers leave first. That delivers more cost savings per departure for UPS. The 7,500 cap is well below what UPS appeared to target — the company never disclosed an exact number, but the original offer terms suggested far more than the 3,000 who accepted less generous packages last fall.

This is one piece of a larger restructuring. UPS has targeted 30,000 total job cuts this year, tied to the Amazon phase-out, slower shipping demand and 22 planned warehouse closures. With a $150,000 price tag per driver and no further severance programs permitted through July 31, 2028, the company just locked in both the cost and the limit of its voluntary attrition strategy.

"Lifelong Teamsters who have given so much of themselves to making UPS the king of parcel delivery will have the right of first refusal on any severance agreements," Teamsters General President Sean O’Brien said. "Union seniority and the rights of all our members will be honored."

So What? At 7,500 buyouts and $150,000 each, UPS is committing up to $1.125 billion in severance to shrink its driver workforce. Seniority-based selection means the most experienced (and most expensive) drivers exit first, which accelerates wage savings but removes institutional knowledge from the network. Shippers relying on UPS feeder routes should watch for service disruptions in lanes where buyout acceptance is concentrated.

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Top Stories

FMC blocks Maersk’s emergency fuel surcharge for the second time

The Federal Maritime Commission denied Maersk’s second attempt to waive the 30-day notice period for an emergency bunker surcharge tied to the Iran war. Maersk cited VLSFO prices that nearly doubled from $509 per metric ton on Feb. 6 to $929 on March 9 after the Strait of Hormuz closure stalled tanker traffic. FMC Chair Laura DiBella said Maersk failed to link its cost data to the surcharge amount. The carrier had planned charges of up to $400 per container on long-haul routes and $600 on refrigerated units. The FMC also rejected a similar request from Turkish carrier Turkon on April 1.

So What? The FMC is forcing carriers to justify surcharges with actual cost data, not just assertions. The 30-day waiting period still applies, which means shippers have a window to plan before any approved surcharge takes effect. Carriers with stronger documentation will get through faster next time.

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Trucking employment drops to lowest level since late 2017

March BLS data puts truck transportation employment at 1,464,100 jobs, the third consecutive month below a threshold last seen in December 2017. The sector shed 800 jobs from February and is down 27,300 from a year ago, with 124,500 fewer jobs than the October 2022 peak. Economist Aaron Terrazas called it a near-decade of job gains erased. David Spencer of Arrive Logistics noted that regulations and rising fuel costs continue to squeeze carrier capacity even as spot rates climb. Uber Freight’s Mazen Danaf pointed to strong tractor orders as a sign carriers expect tightness to persist, but said rising diesel prices are pushing smaller operators out.

So What? Falling employment alongside rising rates is the textbook capacity squeeze. Carriers are thinning out faster than new drivers can replace them, and independent owner-operators not captured in BLS data are likely exiting at an even steeper rate. Rate pressure has more room to build.

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North American customs data shows tariffs reshaping trade flows, not stopping them

February customs data from the U.S., Canada and Mexico shows tariffs changing where and how goods move rather than reducing volumes. Mexico’s customs revenue fell 13% year over year in real terms, with import VAT down 22.6% and border goods values declining 8.1%. Canada posted record imports of $72.1 billion, up 8.4%, with a widening trade deficit of $5.7 billion. The U.S. goods and services trade deficit grew to $57.3 billion, with the Mexico-specific deficit jumping $4.1 billion to $16.8 billion.

So What? Companies are reclassifying goods, shifting sourcing and routing freight through different countries to reduce tariff exposure. Trade lanes may shift faster than total volumes, so watch cross-border trucking and rail patterns by region.

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LA bust uncovers $1M freight theft pipeline with live-stream resale

Authorities recovered more than 50 pallets of stolen merchandise from an LA warehouse staging operation that was already feeding product into live e-commerce resale channels. Brands including Alo and Skims were targeted for their high resale value and ease of liquidation. The operation was not a one-off theft but an organized pipeline where distribution was planned before the cargo was taken. Stolen goods were positioned for sale within hours, often before a claim was filed.

So What? High-value, high-liquidity freight needs a separate risk workflow. If your product can be monetized on a live-stream marketplace within hours of pickup, standard carrier vetting and unsecured load details are an invitation. Verify identity at the moment of handoff, not just at onboarding.

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From the Research Desk

What We’re Watching

▸ UPS buyout uptake by region. With 7,500 slots and seniority governing selection, the geographic concentration of departures will determine where feeder-route disruptions hit first. Watch for early reporting on acceptance rates in central states where opposition was strongest.

▸ Carrier surcharge filings after the FMC’s Maersk denial. The commission set a clear standard: show your cost data or wait 30 days. Other carriers will adjust their filings accordingly. Track which lines refile with stronger documentation this week.

▸ Whether trucking job losses accelerate into Q2. Three consecutive months below late-2017 levels is a trend, not a blip. Rising fuel costs and regulatory pressure are pushing small carriers out faster than rate increases can pull new capacity in. April data will show whether the floor is still falling.

That’s your Daily for today. See you tomorrow.

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