United Parcel Service Inc. is struggling to handle the surge in shipments from online shoppers, resulting in delivery delays early in the critical holiday season and prompting the carrier to a push drivers to work extra hours.
UPS UPS, -2.71% , which handles deliveries for many of the biggest retailers including Amazon.com Inc. AMZN, +0.67% , Wal-Mart Stores Inc. WMT, +0.85% and Macy’s Inc. M, -2.25% , 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.
“We have shifted more employees and other resources to these markets to address this cyber week surge and expect to have the issue resolved by midweek, this week,” Gaut said.
The delays show that delivery networks such as UPS, which are critical components of the e-commerce boom, are still struggling to cope with the busiest shopping periods despite heavy investment to build out and automate their operations and capacity. For the first time this year, UPS tried to manage the flow of packages by adding surcharges to deliveries during peak periods.
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