singapore hotel: UPS fails to cope with Christmas deliveries

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December 27, 2013

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Amazon is refunding customers. Photo: AP

Amazon.com, the largest online retailer, has offered customers $US20 gift cards and refunds on shipping charges after an avalanche of orders caused United Parcel Service to miss delivery of some packages by Christmas.

The retailer cited failures in UPS’s transport network in messages to customers, saying Amazon had processed orders in time for holiday delivery. Amazon was reviewing the performance of the carriers, spokeswoman Mary Osako said.

UPS, the world’s largest package-delivery company, said in a service update on its website that the volume of packages sent by air had exceeded its capacity before Christmas.

The company would resume normal service on Thursday after making no pick-ups or deliveries on Christmas Day, it said.

US online holiday retail sales were expected to rise 15 per cent to a record of more than $78 billion, according to a Forrester Research report published last month.

UPS expected to ship more than 132 million parcels worldwide in the week before Christmas, according to Bloomberg Businessweek.

”We’re deeply sorry for disappointing our customers expecting delivery in time for Christmas,” said Jen Johnson, a spokeswoman for Kohl’s Corporation department stores.

The company is contacting those affected and Kohl’s would fully cover the cost of all items not delivered on time, Ms Johnson said.

David Tovar, of Wal-Mart Stores, did not immediately respond to emails seeking comment on the Christmas holiday.

Johnna Hoff, of eBay, Kathleen Waugh, of Toys ‘R’ Us and Laura Jones of Zulily did not immediately respond to calls seeking comment.

An email to UPS’s public relations department and a call to spokeswoman Natalie Black were not immediately returned. A telephone call to UPS’s Singapore office was not answered.

UPS has long dominated the holiday shipping business in the US because of its fleet of 101,000 signature brown trucks, vans, tractor trailers and motorcycles, according to Bloomberg Businessweek.

Its rival, Memphis, Tennessee-based FedEx, has more jets though its ground-delivery fleet is less than one-third the size, at about 32,000 vehicles.

To cope with the Christmas rush, UPS added 55,000 part-time holiday workers, leased 23 extra planes and effectively built a second truck fleet to handle the seasonal package flow.

Bloomberg