Heavy volume of shipments causes delivery delays for UPS

Heavy volume of shipments causes delivery delays for UPS

The company notes that more shoppers were doing their Christmas buying then than what it was previously expecting.

UPS said there will be delivery delays through the middle of this week due to a deluge in ecommerce orders beginning on Cyber Monday and in the days following, Bloomberg is reporting.

Atlanta-based UPS, which has made major investments to upgrade and expand its facilities, said it shifted more employees and other resources to certain markets in its network and expected to have the issue resolved by midweek.

"This is, after all, the third consecutive year in which Cyber Monday purchases have overwhelmed the company's capacity to deliver packages for the holidays", Teamsters General President James Hoffa wrote in a letter to UPS Chief Executive Officer David Abney on Monday.

But UPS is expected to deliver nearly 750 million packages over the peak season, while FedEx estimates are about half that - about 400 million.

Through a combination of new capacity and seasonal hiring, UPS expects to process almost double the normal average daily volume of more than 19 million packages and documents.

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The delay shows delivery services like UPS are struggling with busy shopping periods, like the recent Black Friday and Cyber Monday events that followed Thanksgiving. That's about 40 million more packages than previous year. Amazon by itself saw its largest sale ever recently.

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

In addition, UPS told over 100 delivery centers in areas that have high demand that their drivers might be requested to work more hours until January 5, including as many as 70 hours over a period of eight days.

"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".

Jindel said ShipMatrix data also showed that while delivery to access points for pickup is being embraced by consumers, more than 40% of orders shipped to one are not being picked up by customers until a day or more later.