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UPS, Overwhelmed by Online Orders, Warns of Delivery Delays

The delays show that delivery networks such as UPS, which are critical components of the e-commerce boom, are still struggling to cope with the busiest shopping periods despite heavy investment to build out and automate their operations and capacity.

For the first time this year, UPS tried to manage the flow of packages by adding surcharges to deliveries during peak periods.

The week after Thanksgiving is the start of the delivery crunch, as carriers begin to process online orders placed during the holiday weekend and millions more packages pour in, starting the following Monday. Adobe estimated that Cyber Monday sales hit $6.6bn this year, up more than 17 percent from 2016.

ShipMatrix, a software provider that analyzes shipping data, said 89.2 percent of parcels shipped last week through UPS Express were delivered on the day they were promised. The worst on-time service hit packages that UPS picked up on Monday and Tuesday of last week.

By comparison, 99.4 percent of FedEx Express packages were delivered by the end of the day they were scheduled to arrive.

Gaut said UPS doesn’t comment on the accuracy of third-party data. UPS expects the “vast majority” of the 750 million packages that it ships between Thanksgiving and Christmas will be delivered on time, he added.

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For the first time this year, UPS tried to manage the flow of packages by adding surcharges to deliveries during peak periods.

The week after Thanksgiving is the start of the delivery crunch, as carriers begin to process online orders placed during the holiday weekend and millions more packages pour in, starting the following Monday. Adobe estimated that Cyber Monday sales hit $6.6bn this year, up more than 17 percent from 2016.

ShipMatrix, a software provider that analyzes shipping data, said 89.2 percent of parcels shipped last week through UPS Express were delivered on the day they were promised. The worst on-time service hit packages that UPS picked up on Monday and Tuesday of last week.

By comparison, 99.4 percent of FedEx Express packages were delivered by the end of the day they were scheduled to arrive.

Gaut said UPS doesn’t comment on the accuracy of third-party data. UPS expects the “vast majority” of the 750 million packages that it ships between Thanksgiving and Christmas will be delivered on time, he added.

Read Full Article