UPS expects record holiday shipping season


UPS expects to handle a record 750 million packages over the holiday shopping period from Thanksgiving to New Year’s Eve this year.

The Sandy Spring-based shipping giant said it expects delivery volume to be up 5 percent this year over last year’s holiday peak season, as online shopping continues to grow.

But it could be more expensive to ship packages this year. UPS is adding peak season surcharges for the 2017 holiday season. And starting Dec. 24, UPS is increasing its rates an average of 4.9 percent.

UPS CEO David Abney said in an interview with The Atlanta Journal-Constitution that he expects more retailers to start promotions early or run them outside of peak periods to “beat a surcharge.”

“This just adds a financial incentive to get our customers to work within our capacity,” Abney said.

Holiday shipping volume on UPS is nearly double its regular daily volume. For the holiday season, the company is hiring 95,000 temporary workers, including drivers, package sorters and loaders.

UPS said its new Saturday ground pickup and delivery service will help it to handle increased volume. The company is also building new facilities to boost capacity, and said it has added nearly 8,000 permanent year-round positions due to the growth.

The company, which on Thursday reported more than $1.2 billion of profit for the third quarter, said its operating profit took a $50 million hit from natural disasters in the quarter.

That includes impact from hurricanes in Houston, Florida, Puerto Rico and Louisiana, wildfires in California and the earthquake in Mexico. There is lasting impact in Puerto Rico and California due to businesses that are UPS customers that have not been able to re-open their buildings yet, Abney said.

“It just takes longer to turn it around then a few weeks,” he said.

MYAJC.COM: REAL JOURNALISM. REAL LOCAL IMPACT.

AJC Business reporter Kelly Yamanouchi keeps you updated on the latest news about Hartsfield-Jackson International Airport, Delta Air Lines and the airline industry in metro Atlanta and beyond. You'll find more on myAJC.com, including these stories:

Never miss a minute of what's happening in local business news. Subscribe to myAJC.com.



Reader Comments ...


Next Up in Business

Business stories of the week: Amazon, 2018 priorities, Phipps Plaza
Business stories of the week: Amazon, 2018 priorities, Phipps Plaza

The week had no shortage of business headlines among Atlanta area companies – or perhaps companies that want to become Atlanta area companies. From the Amazon second headquarters search to major development projects, here are some of the big business headlines you might have missed from the past week. Georgia and Atlanta area economic development...
More job cuts coming to Atlanta as part of Coca-Cola restructuring
More job cuts coming to Atlanta as part of Coca-Cola restructuring

Atlanta-based Coca-Cola plans to cut an additional 179 jobs in its hometown as part of a broader restructuring the beverage giant announced earlier this year. In filings with the Georgia Department of Economic Development’s Workforce Division, Coke identified layoffs at three corporate offices in the city effective by the end of December...
Atlanta’s Phipps Plaza makeover plan shifts into overdrive
Atlanta’s Phipps Plaza makeover plan shifts into overdrive

The reinvention of Phipps Plaza into a mixed-use entertainment and shopping complex has been in the works for more than a decade. But the announcement Tuesday of a $200 million-plus expansion, including a flagship Nobu hotel and restaurant, will take that the makeover to a new level, officials with mall owner Simon hope. In Nobu, Phipps will add...
4 of the best ways to turn your home into a cash cow
4 of the best ways to turn your home into a cash cow

Your house is a large expense with many associated costs like a mortgage payment, insurance, maintenance and more. It provides a roof over your head, of course, but since it usually costs you money each month, why not put it to work for you and earn some cash in the process? The following are four ways your house can make you money: If you're planning...
6 things to know about working for Uber
6 things to know about working for Uber

Uber has been making headlines in recent months for everything from a new CEO to industry regulation. But if you want to work as a driver for the service that revolutionized the taxi-transport industry, there is more important information about Uber you'll want to check out. Here are six things you need to know about Uber before working for them...
More Stories