In October, Mr. Abney, the UPS CEO, told investors that the company was “well-positioned to have a successful summit, both from a customer perspective and an investor perspective. We’ve been working quite a long time on this, and I think there is a good deal of confidence through the group.”
UPS Can’t Keep Up With That Online Shopping
United Parcel Service Inc. delays got worse last week as the world’s largest parcel shipping company struggled to deal with a surge in online shopping that rival FedEx Corp. managed in stride.
“People are buying more than the carriers anticipated,” said Satish Jindel, president of ShipMatrix, which monitors the performance of parcel couriers. The provider’s survey tracks millions of packages, he said.
UPS’s performance threatens to weigh heavily on the business’s results. End-of-year revenue is usually about 15 percent greater than in other quarters, while daily volume almost doubles. The stock’s leadership typically is tied to how well bundles are delivered from November to January.
UPS’s vast floor network delivered 91.5 percent of its packages in time throughout the week by Dec. 9, ShipMatrix reported Wednesday. The Atlanta-based courier posted a 94.4 percent on-time speed the previous week.
FedEx finished 97.1 percent of its floor deliveries in time for the most recent week, improving slightly from the week before. UPS expects to deliver 750 million bundles in the peak holiday season, compared with roughly 400 million for FedEx.
UPS is processing record quantity, said spokesman Steven Gaut. Those places have since caught up to greater-than-expected volume, ” he said.
UPS last week acknowledged that a “bubble” in its network after Thanksgiving extended the time that a number of packages were in transit. UPS is seeing no bubble Gaut said.
“We are in a position to finish the peak season satisfying our clients,” he said.
UPS Makes Allergic Wait to Celebrate
United Parcel Service Inc. is doing right by President Donald Trump’s criteria, but that is hardly what shareholders want to see at this time.