Cyber Weekend Surge Causing UPS Delays

Cyber Weekend Surge Causing UPS Delays	
							Mike O'Brien

UPS says some package deliveries are being delayed because of an unexpected flood of orders from online shoppers after Thanksgiving.

Money reports the delivery company said "a small percentage of packages" are being delivered a day or two later.

The delays came in spite of UPS making massive investments in its network, technology and facilities over the past few years, following a disastrous 2013 holiday season, and again hiring 95,000 temporary workers.

The courier's Express unit delivered 89 percent of packages by the end of the expected delivery day between November 27 and December 2, compared with an on-time rate of more than 99 percent at FedEx Corp., according to ShipMatrix Inc., a data provider that tracks shippers' performance.

UPS is sticking with its forecast of holiday shipments of more than 750 million package deliveries between Thanksgiving and December 31, a 5 percent increase over previous year.

The delays from UPS were in line with findings from ShipMatrix, which tracks carrier performance based on data from its network.

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.

"We have shifted more employees and other resources to these markets to address this cyber week surge and expect to have the issue resolved by midweek, this week", he added.

For the first time, UPS this year has implemented a 27-cent surcharge for packages sent to US home addresses during specific weeks of the holiday season. Amazon by itself saw its largest sale ever recently.

The Cyber Monday surge also required UPS to implement a 70-hour work schedule for drivers over an eight-day period.

The holidays are always a frenzied period for delivery companies. However, it wasn't ready for the amount of orders that were made around Cyber Monday.

The UPS spokesperson said the company was taking every necessary step to ensure it is serving the demand of its customers especially during the current holiday rush. O'Connor said UPS does not comment on third-party estimates.

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