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Surge In Online Orders Overwhelms UPS Christmas Deliveries

Posted by timothy on from the coordinating-unknowns-is-hard dept.

Hugh Pickens DOT Com writes "Reuters reports that the high volume of online orders of holiday packages overwhelmed shipping and logistics company UPS delaying the arrival of Christmas presents around the globe and sending angry consumers to social media to vent. The company projected 132 million deliveries last week "and obviously we exceeded that," said UPS spokeswoman Natalie Black without disclosing how many packages had been sent. "For now, UPS is really focused on delivering the remaining packages. You might not see trucks, but people are working." Asked why the company underestimated the volume of air packages it would receive, Black noted that previous severe weather in the Dallas area had already created a backlog. Then came "excess holiday volume" during a compressed time frame, since the period between Thanksgiving and Christmas was shorter than usual this year. Amazon.com responded with an email to affected customers offering shipping refunds and $20 gift cards to compensate. Packages shipped via UPS for Amazon.com by Prime customers, who pay $79 a year for two-day shipping, may be eligible for additional refunds. Amazon's stated policy for missed deliveries is to offer a free one-month extension of Prime. Frustrated consumers took to social media, with some complaining that gifts purchased for their children would not arrive in time to make it under the tree by Christmas morning. '"A lot of these employees keep saying 'It's the weather' or 'It's some kind of a backlog,' said Barry Tesh. 'Well then why, all the way up until the 23rd, were they offering next-day delivery? That guaranteed delivery was 80% of my decision to buy the gift."' However, others on social media urged shoppers to be more appreciative of the delivery company's work during the holiday season. 'While others take vacation and time off in December, remember we aren't allowed ever to be off in December. Ever,' said a 20-year veteran UPS driver on the UPS Facebook page. 'So when you see your family and complain that your package is held up, everyone who moves your package is working and doesn't get the Xmas experience you get, Be thankful for that.'"

10 of 378 comments (clear)

  1. Understandable, but... by DoofusOfDeath · · Score: 5, Insightful

    I can understand that UPS / Fedex failed to predict their full load. It's too bad, but part of life.

    What really surprises me is that they didn't have a system in place that (a) detected when they were at risk of having too many order to keep their QoS commitments, and (b) warning prospective customers that they might not get a prospective order delivered by Christmas.

    1. Re:Understandable, but... by Anonymous Coward · · Score: 5, Insightful

      Actually, they did.

      My wife works for a relatively well-known shoe/clothing manufacturer that also does direct sales (website, catalog, etc.) FedEx was warning them several days before Christmas that they predicted a delivery problem due to late orders rising faster than they predicted. Her company has an overflow agreement with UPS, so they started witching some orders to them, but then both companies hit a wall in terms of delivery capacity.

      It sounds like this was one of those problems where they both saw it coming, but couldn't do anything about it. There have been more than a few articles about FedEx in particular cutting back its container plane fleet due to fuel costs and the overall drop in package deliveries relative to a few years ago. I can only assume UPS has done the same -- when you cut back capacity in order to remain profitable, it stands to reason that a sudden, unexpected and massive surge of packages in your system is going to cause problems. And because both UPS and FedEx are for-profit, public companies, it's ultimately probably cheeper for them to suffer the ill-will and make-goods required of an event like this than to have a lot of excess capacity sitting aorund unused.

    2. Re:Understandable, but... by Anonymous Coward · · Score: 5, Insightful

      If anyone would have bothered to read either UPS's or FedEx's website, they would have seen around the 19th of December they had NO guarenteed delivery date deals. Those promises were purely from the retailers at that point. It's a shame though of course the curriers are the ones who catch the flack.
      Not to mention if people WOULDN'T WAIT UNTIL THE LAST DAMN MINUTE or get out of the house and VISIT A STORE, much of this could have been avoided. I'll admit, I ordered a few small things on the 23rd with the gift wrap and next day option from Amazon more as a test.. and all 4 items arrived by noon on the 24th. (They were shipped from an amazon DC in the same state so that surely helped).

      Hell my wife's gift from my brother didn't arrive before Chrismast (and he didn't expect it to).. no big deal. For the people who waited to order *everything* in the last few days before christmas and all of it via online.. well maybe you should have grabbed a few from the store or have done the "Ship to store" or "instore pickup" option instead. Or at the very least do what we've done before and print a picture and wrap that and just tell the person it wasn't going to arrive in time.

      Maybe I'm getting more bitter as I age but this 'I wanted it tomorrow and it didn't make it, I don't give a shit about the massive volume of items from other procrastinators like myself or the ice storms and other weather, I WANT MY SHIT IT'S THE CARRIERS FAULT!' mentality is just so damn annoying.

      Lastly, it's not always as it appears either. Over the summer I ordered an RC heliocopter for my son and did 1 day delivery so it would arrive in time for our trip to the beach. All indications on Amazon were it was in UPS's hands later that night. It didn't arrive the next day, and I kept checking the tracking info and it still appeared to be stuck in the intial location in the hands of UPS. After 3 days I called Amazon to find out what was going on, and the agent figured out UPS never had the item as THEY didn't have it either. Here the 3rd party seller or whatever that Amazon did the fulfillment and what not for (for prime and all) hadn't sent them any stock or something along those lines (could have been a complete BS store and Amazon just never packed my stuff). Either way, while the tracking info made it look like it was UPS holding up the show, it was in fact the retailer Amazon that had fucked up. It makes me wonder how many other online retailers didn't have the capacity to fill orders fast enough or were out of stock while the website still listed stock so they had to wait for more before they could box and ship, YET the shipping information was already entered into the system creating a tracking number for UPS or FedEx, which made it LOOK like the delay was on the shipping company used.

    3. Re:Understandable, but... by Anonymous Coward · · Score: 5, Informative

      Surge capacity is expensive and hard to prove of value. So the bean counters don't like it. But they could have I think, for a nominal fee, booked more charter flights, contractors etc. on stand by in case of need.

      Oh hey guys, look, another armchair quarterback on the internet who is absolutely certain that FedEx and UPS, with their multi-billion dollar operations, missed some obvious, easy, and cheap solution to this problem! Color me shocked.

      The reason bean counters don't like paying for "surge capacity" is because "surge capacity" is often left unused, because it is insurance for the rare-to-never case where things completely shit the bed. FedEx and UPS *have* surge capacity built in - what happened this year is that their surge capacity wasn't able to keep up with the actual volume of packages funneling through their systems. Three days before Christmas is a bit too late to begin arranging 'surge capacity' for the holiday season - there's not much volume available for hire at that point, and the planes are frequently not where you want them to be, too, which means they'd have to scramble to fly pilots around to the planes all over the country (or world) where they're parked, fly them to their destination to pick up their cargo, and do this in the space of 12-24 hours in order to get the capacity in place to make a difference for holiday shipments. Then they also need the capacity on the ground in their receiving facilities and delivery trucks to be able to ship everything on time, as well.

      When your business is built-on "just in time" delivery, a late surge and weather-based delays can really fuck up your transportation chain no matter how hard you plan. In most cases, it's better to eat some penalties and freebies to angry customers receiving late packages than it is to spend millions or billions scrambling at the last minute to get every last package there on time.

    4. Re:Understandable, but... by torkus · · Score: 5, Insightful

      So just to use your own point...if emergency rooms (i.e. critically necessary medical services largely funded by the gov't) can't provide capacity necessary for the exception-circumstance...how is it reasonable to expect FedEx or UPS to do even more? Getting a beanie boo before xmas isn't quite as important as pushing saline for a trauma victim with low BP. (though if you read the FB page for FedEx or UPS you might get the impression otherwise)

      I think the vendors deserve much of the blame here if the delivery companies were communicating with them. Heck, if Amazon posted that orders are surging this year and deliveries may be delayed for last second orders...so order RIGHT NOW. just like they do with the silly (but effective) timer for when you can last order something to get it by X day.

      What I find truly ironic - people are blaming FedEx and UPS for 'failing to plan ahead properly' when *they're* the ones ordering things at the very last second. UPS should include a small, complimentary mirror with each of these delayed packages when they're delivered.

      --
      You can get rich if you own a politician, but you have to be rich to buy one in the first place.
  2. Re:Thankful by damicatz · · Score: 5, Insightful

    UPS and FedEx drivers have been working 10-12+ hour days 6-7 days a week since Thanksgiving.

    Your Christmas will not be ruined because of a late package unless you value some item or trinket over spending time with your family. First world problems indeed.

  3. Re:What a load of BS by Deadstick · · Score: 5, Insightful

    That being said, having your gifts arrive a little late falls in the First World Problems category. Get over it.

    True, but so is a corn futures contract. If you sell me one and the corn doesn't show up at the warehouse, I'm not gonna let you off the hook because you had a dry year...and Fedex/UPS should be expected to compensate their customers some way. It won't kill them to knock something off the next shipping bill.

  4. Narcissistic Society says by Anonymous Coward · · Score: 5, Insightful

    "'I wanted it tomorrow and it didn't make it, I don't give a shit about the massive volume of items from other procrastinators like myself or the ice storms and other weather, I WANT MY SHIT IT'S THE CARRIERS FAULT!' mentality is just so damn annoying."

    Society is increasingly narcissistic. The person to whom this is a reply is correct in the statement quoted above as he explains the instant-gratification mentality he observes.

  5. Meh... by mythosaz · · Score: 5, Informative

    First, The UPS "guaranteed on-schedule delivery" already includes the following:

    The guarantee does not apply to UPS shipments that are delayed due to causes beyond UPS's control, including, but not limited to, the following:
    [SNIPPED some basic things, strikes, acts of god, government, customs, etc.]
    disruptions in air or ground transportation networks, such as weather phenomena; and natural disasters.
    The guarantee does not apply to UPS 2nd Day Air A.M., UPS 2nd Day Air, UPS 3 Day Select, and UPS Ground shipments that are picked up or scheduled to be delivered between December 12 and December 25.

    http://www.ups.com/media/en/terms_service_us.pdf

    Can you read that? Christmas is excluded. The whole Christmas season is excluded. ...and they're still offering compensation.

    Good guy UPS.

  6. Re:Thankful by anglico · · Score: 5, Interesting

    When I was a driver (~2000) we could only be on the road for 12 hours (13 with lunch) if I remember correctly, so whether we were finished or not, we had to be back at the building within that time frame. Every Christmas I worked as a driver we were taking packages on the way home in our cars, on our own time, to make sure people got their presents.