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UPS reportedly told drivers across the country to stop collecting packages from six retailers, including Gap, Nike and Macy’s, as the shipping company tried to keep up with a record-breaking online shopping season amid the coronavirus pandemic .
In an internal message obtained by The Wall Street Journal and confirmed by various UPS employees in different regions, the delivery company announced temporary shipping restrictions on retailers, which also included LL Bean, Hot Topic and Newegg.
“No exceptions,” the post reportedly said.
The move comes amid growing demand for services from delivery companies, with lockdown orders and other coronavirus restrictions limiting the number of people making in-person purchases.
The National Retail Federation estimated that online shopping jumped 44% over a five-day period that included Black Friday and Cyber Monday, according to the Journal.
The Journal reported that the temporary limits could be a sign that UPS is regulating the number of packages within its network in order to maintain high performance during the holiday season.
A UPS spokesperson said in a statement to The Hill that if demand exceeds the expected space, the company “will work with our larger customers to ensure that volume is picked up and delivered as more capacity becomes available in our network ”.
The spokesperson did not say if there were specific guidelines for retailers.
“We are pleased with the way the UPS network is operating as we exit the Thanksgiving holiday and enter December, delivering record volume,” the emailed statement added. “UPS continues to work closely with our largest customers to shift volume to capacity and ensure the reliability of the UPS network for all customers.”
“This collaboration includes specific capacity allocations last weekend and throughout the holiday season,” the spokesperson continued. “We have worked with our large retail clients to make sure they are aware of the capacity they have.”
The representative added that “UPS is ready for the holiday season” and is “well positioned to meet the needs of our customers”.
According to ShipMatrix Inc., a software provider that analyzes shipping data, the combination of holiday shipments and continued orders of essential household items amid the pandemic is expected to result in an estimated 7 million daily parcel surplus between Thanksgiving and Christmas.
UPS added in its statement to The Hill that the company is “committed to maintaining the reliability of its network for other customers, including small and medium businesses, which have been hit hardest during the pandemic and are also seeing an increase in vacations. volume.”
“The capacity of our SME network [small- and medium-sized business] customers must also remain strong to help the recovery of this vital part of the economy, ”the statement said.
Latest industry estimates showed Cyber Monday was biggest day of online shopping in the history of the United States, with sales of up to $ 11.4 billion. Amazon announced on Tuesday that independent businesses on its platform made more than $ 4.8 billion in sales worldwide from Black Friday to Cyber Monday.
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