UPS warns that some deliveries are delayed

Reuters

He would not specify how many deliveries. Gaut said the company had reassigned about 400 back-office workers to sorting facilities and delivery routes and rented more trucks to deal with the "bubble" in deliveries.

UPS is responding to complaints on social media, saying it's working to fix the problem.

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.

The company says package deliveries are being delayed because of an unexpected flood of online orders after Thanksgiving. By comparison, FedEx's express service scored better than 94 percent.

"We have planned for this holiday season all year long and have flexed out network and expanded delivery hours to accommodate increased volume, " said spokesman David Partenheimer.

This year, UPS brought on 95,000 seasonal workers for the holidays.


Additionally, UPS has told more than 100 package delivery centers in areas with high demand that drivers may be asked to work extra hours through January 5 - up to 70 hours over eight days.

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 holidays are always a frenzied period for delivery companies.

Corridore downplayed late deliveries of Cyber Monday orders.

UPS predicts that it will deliver 750 million packages between Thanksgiving and Christmas.

Mr. Gaut said UPS doesn't comment on the accuracy of third-party data. "Ultimately we see two turns of additional multiple expansion opportunity for UPS on 2019 earnings, which together with 3 percent dividend yield implies double-digit return potential".

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