UPS warns that some deliveries are delayed

Courtesy of MGN Online

Courtesy of MGN Online

UPS does not expect any delays over Christmas because of this surge in volume but, between November 27 and December 2 its Express unit's on-time delivery rate came in at just under 90%.

UPS spokesman Steve Gaut said the company is adding one or two extra days to the length of time of some shipments.

A spokesperson for UPS said that delivery should return back to schedule by the end of Wednesday.

As for your inquiry regarding shipping performance and reports of delays, UPS does not comment on the accuracy of third-party industry estimates, which vary widely and lag current network performance and operating conditions.

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.

The company said it expects to double the normal average daily volume of more than 19 million packages and documents for the holiday season. That's up 5% from a year ago, when UPS delivered 712 million packages. Amazon by itself saw its largest sale ever recently. Online sales on Cyber Monday may rise at least 18 percent from a year earlier, slower growth than during the holiday weekend, as consumers start their Internet shopping earlier, according to forecasts by International Business Machines Corp.

UPS believes its just a small percentage of packages will be delayed.

In a letter to UPS CEO David Abney, James P. Hoffa also complained that the company plans to increase hours for drivers during the holidays up to 70 hours over an eight-day period. The extension is up from 60 hours over seven days.

"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.

"I fail to understand how the Company neglected to take the steps necessary to ensure that it had a sufficient number of trained workers available to meet the demand generated by the digital economy". But the growing popularity of online shopping has made for more packages to process and deliver.

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