United Parcel Service, Inc. (NYSE:UPS) is warning customers that there may be a delay on their orders.
The UPS delays specifically have to do with orders made on Cyber Monday or the few days after. These orders may face a one- to two-day delay. The reason for this was the sheer amount of orders that were made during this period of time.
UPS is saying that this large amount of orders caused a slight backlog to build up at some of its locations. However, it notes that this issue has mostly been taken care of. As a result, future orders won’t be affected by these UPS delays.
Steve Gaut, a spokesman for UPS, says that the company will have the delays completely taken care of by tomorrow. He also notes that the delivery backlog won’t cause it to miss any Christmas deadlines this year. However, UPS did have to start working its drivers more to deal with the surge of orders, reports Bloomberg.
“This year’s forecasted volume is about 5 percent more than 2016’s holiday volume of more than 712 million packages,” UPS told CNBC. “That’s about 40 million more packages than last year.”
The UPS delays occurred despite it preparing for the busy shopping season by hiring extra employees. However, it wasn’t ready for the amount of orders that were made around Cyber Monday. The company notes that more shoppers were doing their Christmas buying then than what it was previously expecting. This is why some packages had to be delayed, despite it preparing for heavy online ordering during the holidays.
UPS stock was down 1% as of noon Wednesday.
As of this writing, William White did not hold a position in any of the aforementioned securities.