UPS does not expect any delays over Christmas because of this surge in volume but, between November 27 and December 2 its Express unit's on-time delivery rate came in at just under 90%.
UPS, which handles deliveries for numerous biggest retailers including Amazon.com Inc., Wal-Mart Stores Inc. and Macy's Inc., is adding one or two days in transit time on an unspecified number of deliveries following record sales around Cyber Monday, spokesman Steve Gaut said Tuesday.
International Brotherhood of Teamsters General President James Hoffa sent a letter to UPS CEO David Abney saying that this was the third consecutive year in which Cyber Monday orders have overwhelmed the network's delivery capacity.
Steve Gaut, a spokesman for UPS, says that the company will have the delays completely taken care of by tomorrow.
Most packages shipped between Thanksgiving and Christmas are expected to arrive on time, according to the report.
Shoppers who bought items on Cyber Monday could be waiting longer than expected for their packages. News of the delays at Atlanta-based UPS was reported earlier by the Wall Street Journal.
Through a combination of new capacity and seasonal hiring, UPS expects to process almost double the normal average daily volume of more than 19 million packages and documents. This year's seasonal volume forecast is about 752 million packages, or 5% more than the 712 million packages handled last year.
This year's Cyber Monday was the largest online shopping day ever.
UPS believes its just a small percentage of packages will be delayed.
"UPS is likely to see cost pressure and the company has had past execution issues regarding holiday deliveries", wrote CFRA Research analyst Jim Corridore, referring to December stumbles in previous years.
The UPS spokesperson said the company was taking every necessary step to ensure it is serving the demand of its customers especially during the current holiday rush.
However, UPS said the move follows federal requirements and that employees are paid time-and-a-half for over eight hours a day.