- As many investors would expect, FedEx Corporation (NYSE: FDX) and United Parcel Service, Inc. (NYSE: UPS) thrive during the busy holiday season.
- Online holiday sales are expected to grow as much as 8 percent this year, eclipsing last year’s 5.8 percent.
- Meanwhile, retailers are sitting on record high inventories and could turn some stores into e-commerce hubs to boost sales.
Category: UPS News
An old online rumor about terrorists donning UPS uniforms is making the rounds again, snaring at least one Alabama law enforcement official who shared the hoax online.
On Wednesday, Talladega County Sheriff Jimmy Kilgore posted a message on his Facebook page to offer a warning about the supposed purchase of tens of thousands of uniforms from the delivery service. The message appeared to be coming from the Department of Homeland Security.
A lot has been made of the way business-to-consumer e-commerce demand is surging, and how package delivery companies like United Parcel Service and FedEx Corporation will benefit from it in the long term. However, it hasn’t been smooth sailing for those shippers just yet. Volumes have increased strongly during recent holiday seasons, putting pressure on both companies as they attempt to deal with the demand. Consequently, both companies have taken costly measures to improve their abilities to cope with peak. Has peak demand affected profitability, particularly in the fourth quarter?
Cargo pilots at UPS are threatening a strike — and it could be bad news if any customers get spooked.
Last week, pilots at package delivery giant United Parcel Service voted to authorize a strike if negotiations with the company break down. The pilots still need to be released from negotiations by the National Mediation Board for a strike to be legal, something that rarely occurs. As a result, UPS has characterized the strike vote as merely “a symbolic gesture” by the union.
While it may be a symbolic gesture, it’s not a meaningless one. With the threat of a pilot strike during the busy holiday season — even if it’s a low-probability outcome — and UPS drivers promising to support any pilot strike, customers could worry about relying too heavily on UPS. FedEx may be able to capitalize on this uncertainty to gain market share.