What factors contributed to the decline in UPS's net profit in Q1 2024?

The decline in United Parcel Service's (UPS) net profit in Q1 2024 can be attributed to several key factors:

1. Lower Shipping Volumes and Additional Charges: In Q1 2024, UPS experienced a significant drop in shipping volumes, which directly impacted revenue. Additionally, the company incurred additional charges, including those related to pensions, impairments, and its Coyote truckload brokerage business. These charges totaled $512 million and significantly reduced net income.
2. Strategic Shift and Volume Reduction with Amazon: UPS is in the process of reducing its Amazon-related shipments by over 50% by 2026. This strategic shift is likely to impact short-term volumes and could contribute to lower profits in the transition period.

In summary, the decline in net profit is primarily due to lower shipping volumes and additional charges, along with strategic shifts that are currently impacting profitability.