UPS: An Old System About To Be Disrupted

[cheryl]

UPS: An Old System About To Be Disrupted - Seeking Alpha

Summary

• For the third Christmas in a row, FDX or UPS has had trouble handling increased e-commerce shipment volume around the Holiday season.
• Neither of the delivery giants are prepared to handle ramped up volume from 2015's historic levels.
• UPS increased its processing capacity by 6% this Holiday season, but another 20% expansion to handle future growth in e-commerce would likely require billions of dollars of investment.
• It seems UPS is playing "keeping up with the Joneses" here, and we are unsure of how long this can sustain itself.
• It is only a matter of time before UPS loses all of its Amazon business, and maybe more.

 

[realbrown1]

UPS: An Old System About To Be Disrupted - Seeking Alpha

Summary

• For the third Christmas in a row, FDX or UPS has had trouble handling increased e-commerce shipment volume around the Holiday season.
• Neither of the delivery giants are prepared to handle ramped up volume from 2015's historic levels.
• UPS increased its processing capacity by 6% this Holiday season, but another 20% expansion to handle future growth in e-commerce would likely require billions of dollars of investment.
• It seems UPS is playing "keeping up with the Joneses" here, and we are unsure of how long this can sustain itself.
• It is only a matter of time before UPS loses all of its Amazon business, and maybe more.

Not quite accurate.

A. We did handle this years and last years Christmas Season fine.
B. Fed Ex had major problems this Christmas Season and failed.
C. There is no guarantee that volume will be ramped up to such a degree that UPS won't be able to handle it.
D. Amazon would go where? Fed Ex----No, post office-----maybe, start their own delivery service------might as well say that Amazon won't make a profit for the next 20 or so years with the costs involved in that enterprise.
E. UPS is poised to grow, if they plan it right, and they usually do.

 

[upschuck]

I thought I saw where UPS relaxed some of the volume restrictions because we could handle more. Besides Cyber Monday week, we did just fine.

Hard for UPS to get good press.

 

[upsbeernut]

UPS: An Old System About To Be Disrupted - Seeking Alpha

Summary

• For the third Christmas in a row, FDX or UPS has had trouble handling increased e-commerce shipment volume around the Holiday season.
• Neither of the delivery giants are prepared to handle ramped up volume from 2015's historic levels.
• UPS increased its processing capacity by 6% this Holiday season, but another 20% expansion to handle future growth in e-commerce would likely require billions of dollars of investment.
• It seems UPS is playing "keeping up with the Joneses" here, and we are unsure of how long this can sustain itself.
• It is only a matter of time before UPS loses all of its Amazon business, and maybe more.

Hope not but our cost to ship a package scares even myself. I send my stuff thru the post office. Next year we are doing gift cards, no shipping at all.

 

[UpstateNYUPSer(Ret)]

Hope not but our cost to ship a package scares even myself. I send my stuff thru the post office. Next year we are doing gift cards, no shipping at all.

I do cash.

 

[FrigidFTSup]

Hope not but our cost to ship a package scares even myself.

Shippers aren't paying near the cost you and I pay. The last quarterly report put the average cost of a NDA package at 20 bucks.

 

[FrigidFTSup]

I thought I saw where UPS relaxed some of the volume restrictions because we could handle more. Besides Cyber Monday week, we did just fine.

Hard for UPS to get good press.

We also moved a ton of air volume over the ground network for peak. We had teams going to the hub every weekend carrying 2 Day and Next Day volume for Monday. FedEx can't do that.

 

[UpstateNYUPSer(Ret)]

We also moved a ton of air volume over the ground network for peak. We had teams going to the hub every weekend carrying 2 Day and Next Day volume for Monday. FedEx can't do that.

You don't think they put air on their ground trailers?

 

[10 point]

We also moved a ton of air volume over the ground network for peak. We had teams going to the hub every weekend carrying 2 Day and Next Day volume for Monday. FedEx can't do that.

And charged the shipper the air surcharge and then shipping it on the hiway?

 

[FrigidFTSup]

And charged the shipper the air surcharge and then shipping it on the hiway?

It's not like the sort plans and customer shipping system are intertwined. Not to mention circumstances change. If a driver comes in after a trailer pulls the pieces may very well go on an aircraft.

 

[10 point]

It's not like the sort plans and customer shipping system are intertwined. Not to mention circumstances change. If a driver comes in after a trailer pulls the pieces may very well go on an aircraft.

Refund the difference if it happens.
It's that simple.
The technology is there.
What would be the excuse now?

I'm not talking about air going air by the way.
I'm talking about air going ground and being charged jet fuel surcharge.