UPS Extends Residential Delivery Commitment Deadline for Next Day Air Service
UPS Inc. has extended its delivery commitment times for Next Day Air service to select residential locations at noon starting at 10:30 a.m., effective Oct. 18, the company said in a note posted to its website.
The change will remain in effect until further notice, UPS (NYSE: UPS) noted. It is not known when the note was published.
Residential locations affected will be those with “typical” delivery times of 10:30 am, UPS said. All service guarantees will be based on revised delivery commitment times, UPS said.
On April 5, UPS reinstated money-back guarantees on overnight air delivery services in the United States after suspending them in late March 2020 due to the COVID-19 pandemic. The company has not reinstated money back guarantees on all of its products.
UPS, along with other parcel delivery companies, is facing strain on its network due to the growing demand for e-commerce orders and deliveries. The company was not available to comment on the reasons for this decision.
The demand for business-to-consumer (B2C) deliveries is likely to strain carriers during this peak holiday season. The volume of packages requiring daily delivery during peak season is expected to exceed total network capacity by 4.7 million. Although this is less than the total of around 7 million in 2020, the supply gap will remain difficult.
In an email Monday, Trevor Outman, founder and co-CEO of package consultancy Shipware LLC, said the 2021 peak would likely be worse than 2020 for package deliveries, retailers, carriers and consumers. all being significantly affected. Outman cited massive backlogs at west coast ports and labor shortages throughout the supply chain. Issues that existed in 2020, such as escalating delivery surcharges, lack of capacity, and already erratic delivery reliability, will also be present during this peak, Outman said.