UPS: An Old System About To Be Disrupted

Discussion in 'The Latest UPS Headlines' started by cheryl, Jan 6, 2016.

  1. cheryl

    cheryl I started this. Staff Member

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

    • 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.
  2. realbrown1

    realbrown1 Annoy a liberal today. Hit them with facts.

    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.
  3. upschuck

    upschuck Well-Known Member

    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.
  4. upsbeernut

    upsbeernut Sometimes I feel like a nut, sometimes i dont.

    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.
  5. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    I do cash.
  6. FrigidFTSup

    FrigidFTSup Resident Suit

    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.
  7. FrigidFTSup

    FrigidFTSup Resident Suit

    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.
  8. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    You don't think they put air on their ground trailers?
  9. 10 point

    10 point Well-Known Member

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

    FrigidFTSup Resident Suit

    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.
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  11. 10 point

    10 point Well-Known Member

    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.