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United Parcel Service, Inc. Message Board

  • fallingoceanrain fallingoceanrain Oct 29, 2012 9:10 AM Flag

    UPS Peak Season

    Looks like it will be a very busy, record setting, peak season...

    UPS is forecasting 9.8% more holiday shipments to be delivered this year.

    In the month leading up to Christmas, UPS expects to deliver a record 527 million packages, surpassing last year's record of 480 million. The company predicts its busiest day of the year will be Dec. 20, when an estimated 28 million packages will be delivered--the equivalent of more than 300 packages delivered every second of the day. On an average day, UPS delivers 15.8 million packages.

    UPS's peak air day is projected to top 6.5 million deliveries compared to normal daily air volume of 3 million packages. UPS also said it will fly more than 400 additional flight segments per day to ensure on-time delivery of holiday gifts across the world.

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    • So many packages to mangle and destroy, so little time.

    • Ups will handle close to twice the volume that little brother FDX will between Thanksgiving and Christmas. Notice the difference in express shipping, it's UPS when it has to be there in a hurry. Busiest day for UPS, December 20........Busiest day for FDX, December 10.

      FedEx Corp. (FDX) expects to have its busiest day in history on Monday, Dec. 10 when it moves a projected 19 million shipments through its global ground, express and freight networks.
      The 10 percent, year-over-year, busiest day increase will once again be driven by e-commerce feeding the FedEx Ground and FedEx SmartPost networks on “Green Monday,” which falls on the second Monday of December and is one of the most lucrative days of the year for retail companies. In 2011, U.S. consumers spent $1.1 billion on Green Monday alone, according to comScore. Green Monday also traditionally kicks off the heaviest online shopping week of the year.
      For the overall holiday season between Thanksgiving and Christmas, FedEx forecasts more than 280 million shipments to move through its worldwide shipping networks. This would be a year-over-year volume increase of more than 13 percent compared to 2011 when 247 million
      FedEx plans to increase with approximately 20,000 seasonal personnel to help handle the surge in holiday shipments at FedEx Ground, FedEx Home Delivery and FedEx SmartPost.
      “The continued trend toward record Peak volumes is a testament to the strength, speed and reliability of the FedEx Ground and FedEx SmartPost networks,” said Frederick W. Smith, chairman, president and CEO of FedEx Corp. “FedEx team members from around the globe, 300,000 strong, are prepared to help drive commerce during the busy holiday season and beyond.”
      Holiday volumes are retail-driven, with goods such as personal electronics, apparel, luxury goods and items from large internet retailers accounting for holiday shipping volumes.
      The impact of the expected higher FedEx Ground and FedEx SmartPost volumes were included in the company’s earnings guidance for fiscal 2013.
      The Holiday Retail Outlook
      The National Retail Federation (NRF) expects holiday sales to increase 4.1 percent this year to $586.1 billion. The NRF’s forecast is higher than the 10-year average holiday sales increase of 3.5 percent.
      Online holiday sales (excluding travel) are expected to grow 16.8 percent year-over-year to as much as $54.5 billion, according to eMarketer. Almost $1 out of every $10 of consumer discretionary spending is now online according to comScore for eCommerce & U.S. Department of Commerce for Retail, February 2012.

      NEW YORK (AP) -- UPS expects to deliver 527 million packages between Thanksgiving and Christmas this year, surpassing last year's record high by 10 percent.
      The world's largest package delivery company estimates 28 million of those will be delivered on Thursday, Dec. 20 — projected to be the busiest day of the year. That's nearly double what the Atlanta company moves on an average day.
      The busiest day of the year has moved close to Christmas because more Americans are ordering gifts online and using expedited shipping. Most packages will arrive within three days. Last-minute shoppers who ship packages by Friday, Dec. 21, can get their goods by Christmas Eve via next day air.
      To handle the big jump in package volume, UPS plans to hire 55,000 seasonal workers to sort, load and deliver packages, the same number it hired last year, but 10 percent higher than in 2010.
      UPS' smaller rival FedEx expects to handle 280 million shipments between Thanksgiving and Christmas, up 13 percent from the same stretch last year.
      On FedEx's busiest day this year, projected to be Dec. 10, it forecasts 19 million packages will move through its network, up 10 percent from 2011.
      FedEx's busiest day is much earlier because its peak time shipments are comprised of fewer priority packages. The company is based in Memphis, Tenn.
      Overall holiday sales are projected to rise 4.1 percent, according to The National Retail Federation. That would be the smallest increase since 2009, but still higher than the 10-year average of 3.5 percent.
      But online holiday sales will grow 16.8 percent, excluding travel purchases, according to research firm eMarketer. Online shopping accounts for about $1 in every $10 spent over the holidays.

    • So much for the doom and gloomer comments. Some people just can't stand UPS's success. Sooo, we believers will just continue to enjoy the ride. No, it may not be a dynamic stock, but it sure hangs in there through thick and thin.

      Sentiment: Strong Buy

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