UPS struggling to keep up with holiday shipping demand

07 December, 2017, 03:06 | Author: Terri Saunders

UPS is a little behind schedule after last week's surge in online orders.

The company said it still expects most packages shipped between Thanksgiving and Christmas to arrive on time.

UPS is expected to return to normal operations with fewer delayed shipments by the end of Wednesday.

"We have resolved the situation that created the delays", Gaut told CNNMoney.

"UPS is likely to see cost pressure and the company has had past execution issues regarding holiday deliveries", wrote CFRA Research analyst Jim Corridore, referring to December stumbles in previous years.

Online shopping has been so successful this year that UPS can't keep up.

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ShipMatrix, a software provider that analyzes shipping data, said 89.2% of parcels shipped last week through UPS Express were delivered on the day they were promised.

UPS predicts that it will deliver 750 million packages between Thanksgiving and Christmas. Gaut said the recent delays would not change the hiring target. But the growing popularity of online shopping has made for more packages to process and deliver.

The company has already notified workers at more than 100 delivery centers that it may raise driver work hours to 70 hours over an eight-day period.

The president of the Teamsters union, which represents UPS drivers, said the company wasn't staffed properly and has underestimated Cyber Monday purchases three straight years.

UPS and the union are now in the middle of contract negotiations.

"UPS customers can be confident that UPS is taking the necessary steps to ensure the network operates with its customary dependable performance throughout the holiday season", Mr. Gaut said. "We've been working a long time on this, and I think there's a lot of confidence throughout the group".

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