UPS Extends Amazon Volume Cuts Through 2026
UPS is pressing forward with its strategy to reduce Amazon delivery volume, announcing plans to continue the pullback through 2026 as part of a broader network transformation aimed at extracting billions in cost savings.
The move signals UPS's commitment to prioritizing profitability over volume—a notable shift in an industry that has historically chased package counts. By deliberately walking away from Amazon business, UPS is betting it can reshape its U.S. network around higher-margin customers and more efficient operations.
What This Means for 3PLs
This strategic retreat by a major carrier creates ripple effects across the fulfillment ecosystem. As UPS reduces capacity allocated to Amazon, other carriers and 3PLs may see opportunities to absorb that volume—though they'll need to carefully evaluate whether the economics make sense for their operations.
The bigger takeaway: Even the largest logistics players are now willing to turn down volume that doesn't meet profitability thresholds. That's a shift from the pandemic-era scramble for any and all e-commerce business, and it suggests the industry is entering a more disciplined phase focused on sustainable margins rather than growth at any cost.
