UPS may hike charges for major customers for holiday package surges

[cheryl]

UPS may hike charges for major customers for holiday package surges - Reuters

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 (UPS.N) and main rival FedEx Corp (FDX.N), 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)."

 

[ups1990]

Yes, thank you! Why shouldn't UPS throw its weight around? We can't have companies trying to push all of their last minute peak volume on us and not charge it's customers accordingly and making promises that it can't keep and have UPS holding the bag when all fails. Maybe this will be a deterrent to those big retailers from acting in bad faith.