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UPS News

UPS sees no rerun of glitch-marred December: CFO – Reuters

The No. 1 U.S. courier company is investing in new technology and expanded capacity so that the 2014 holiday season should go smoothly, Chief Financial Officer Kurt Kuehn said on Thursday.

UPS has increased investments in capacity expansion by $500 million, a large part of which is a direct reaction to the recent holiday season’s glitches, Kuehn said. Total capital expenditures in 2014 are expected to reach $2.5 billion.

The company is also going to focus on improving communications with key customers as part of the new strategy, while adding technology that makes it easier to estimate volumes.

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UPS Crash Probe Focuses on Fatigue as U.S. Hearing Set – Bloomberg

U.S. crash investigators are focusing on pilot fatigue, training and adherence to procedures in the fatal Aug. 14 crash of a United Parcel Service Inc. (UPS) jet freighter in Birmingham, Alabama.

The NTSB will call witnesses to discuss how UPS trains pilots for approaches like the one the accident crew was flying to Birmingham, which required them to stay clear of unlit hills near the runway without a radio beam to ensure they were at the correct altitude, according to the release.

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UPS to Spend More Than $100 Million on Shipping Changes – Bloomberg

United Parcel Service Inc. (UPS) said it will spend more than $100 million to improve peak-period service after a late surge in online Christmas shopping caused missed deliveries that boosted costs.

With the delivery volume growth rate during the holiday period almost twice what UPS had projected, the company had to add 30,000 more workers than planned, boosting fourth-quarter expenses by as much as $150 million, Chief Executive Officer Scott Davis said today on a conference call. Some packages still didn’t arrive at their destinations by Christmas, causing refunds that sliced quarterly revenue by $50 million.

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UPS posts 4Q results hurt by holiday shipping woes

UPS earned $1.2 billion in the fourth-quarter but a last-minute surge in holiday shipments drove up costs and hurt results.

UPS was undone in December by a big increase in online shopping and a crush of last-minute orders by shoppers who jumped on offers of free shipping until the final days before Christmas. An unusually late Thanksgiving added to UPS’ challenge by shrinking the traditional shopping-and-shipping season by several days.

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United Parcel Service, Inc. : Western Pennsylvania Teamsters Reject Part of UPS Pact – 4 Traders

Teamsters union members at a the Western Pennsylvania bargaining unit again rejected part of a contract with United Parcel Service Inc., prolonging labor headaches for the shipping company.

In a vote counted Friday, Teamsters-represented workers rejected the Western Pennsylvania supplement to the national contract for the second time, 1,230 to 430, according to the national International Brotherhood of Teamsters.

Splinter-group Teamsters for a Democratic Union said employees rejected the contract in part over health-care benefit issues.