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UPS, FedEx Struggle to Keep Up With Surge in Holiday Orders

Posted December 15, 2016

Under Economic Issues, Logistics & Supply Chain Issues

(Erica E. Phillips & Jennifer Smith – Wall Street Journal)

United Parcel Service Inc. and FedEx Corp. are straining to keep up with holiday shipping volumes that have blown past expectations, delaying the delivery of some of the millions of online orders shoppers have placed since Thanksgiving.

UPS has relocated hundreds of staff from its headquarters and other corporate offices to help at shipping hubs struggling to handle record demand, according to people familiar with the situation. Already in advance of the busy holiday season, both UPS and FedEx had extended delivery windows on some routes, suspended delivery guarantees and refunds for certain weeks and stopped promising to deliver express packages by a certain time in some cases.

Despite these measures, analysts say on-time delivery rates for UPS and FedEx were down slightly during the weeks following Thanksgiving, compared with their average rates during the rest of the year. Click here to read more.