UPS has said it will not raise the number of packages it delivers for Amazon as it focuses instead on shipments that offer the greatest financial returns.

The logistics giant has recently raised prices for e-commerce shipments that have seen a boom after the pandemic. Earlier this week it reported a better than expected quarterly profit. Even so, volumes in its domestic unit fell in the second quarter – in a large part due to UPS decision to enforce its maximum package agreement with Amazon.

“We’ve contractually agreed on what makes sense for us versus what makes sense for them. That means that the volume and revenue for Amazon is coming down,” said UPS CEO Carol Tome, who forecast that Amazon will account for less than 11% of total UPS revenue by the end of the year.

UPS have had a bit of a stormy relationship with Amazon over the years. In 2013, Amazon swamped UPS with an unexpected surge in Christmas packages. This led to knock on effects on the rest of the UPS delivery network and impacted customer and client relationships.

Amazon has now launched its own full logistics network that includes land, sea and air transport, that is already among the top five delivery companies in the world, among which UPS is number 1. While Amazon now competes with UPS, at the same time it still sends millions of parcels a year through the company it now also competes with – and in the coming years could even grow to be even larger than UPS.

UPS is now looking to revive its B2B interests that were its main source of income before the pandemic. As it changes focus back to that, it has found a change in environment with millions of workers now working from home and not in offices, making that old line of business less lucrative. The logistics giant is hardly doing badly though with healthy profit margins and a growing international delivery business.