In a move designed to capture network costs associated with retailers who fail to meet peak volume commitments, UPS plans to charge them for shortfalls this year. The charges would cover costs such as extra workers and surplus space on trucks or in distribution hubs based on retailers’ projections and volume commitments.
peak season demand
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Cyber Weekend, while a boon for retailers, hit UPS’ on-time performance, according to ShipMatrix. UPS says its network is operating as expected, most customers are getting packages on time, and it doesn’t put stock in ShipMatrix data. The company did say it experienced higher-than-expected volumes in some locations.