UPS and the Teamsters have reached a tentative deal on a new contract. That could potentially avoid a strike, which could have started as soon as next week and crippled US supply chains.

"UPS and the International Brotherhood of Teamsters, the union representing about 330,000 UPS employees in the U.S., have reached a tentative collective bargaining agreement," the company said in a statement.

"Together we reached a win-win-win agreement on the issues that are important to Teamsters leadership, our employees and to UPS and our customers," said Carol Tomé, UPS chief executive officer, said in the statement. "This agreement continues to reward UPS's full- and part-time employees with industry-leading pay and benefits while retaining the flexibility we need to stay competitive, serve our customers and keep our business strong."

This is a developing story and will be updated.