United Parcel Service Inc may charge major customers more for a surge in late, unplanned packages or turn down the business if it threatens disruptions during the peak holiday season, a top executive said on Friday, trying to avoid a repeat of last year’s delivery meltdown.
UPS and main rival FedEx Corp, both considered U.S. economic bellwethers, are approaching their busiest time. Last year a last-minute surge in online consumer promotions left an estimated 2 million express packages stranded on Christmas Eve.
“If it (a late surge) creates challenges and adds costs we would charge a premium,” Chief Financial Officer Kurt Kuehn told Reuters. “If it puts our service at risk, we would have to deny (the business).”