UPS imposes shipping caps on some of its largest retailers as holiday shopping booms

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The restrictions will go into effect this week and apply throughout the holiday season, the company said. Retailers have been made aware of their shipping capacity alongside the newly enforced limits.

“UPS (UPS) continues to work closely with our largest customers to shift volume towards capacity and ensure UPS network reliability for all customers, ”the company said in a statement.

UPS did not provide the names of the retailers who would be affected by the new limits.

“Knowing the unique constraints facing the industry in this peak season, we have worked with our carriers from the start to collectively build a strategic execution plan,” Gap said in a statement. “We have been very pleased with the level of partnership and engagement we have received from our carrier base, and in particular that of UPS, and we hope that this will continue through the holiday season.”

A Nike spokesperson said, “We expect the majority of these orders to meet estimated delivery dates and we are communicating with consumers any change in delivery.”

The shipping company is imposing restrictions to ensure it can meet the needs of customers, including small and medium businesses that have been hit hard by the pandemic. The shipping limits come as the pandemic has pushed more shoppers to shop online, especially for the holidays.

Holiday sales so far this year have broken records. According to Adobe (ADBE) Analytic.

Cyber ​​Monday sales also saw an increase, generating $ 10.8 billion in sales, a 15% increase from the previous year. This made Cyber ​​Monday the biggest online shopping day in history, according to Adobe Analytics.

UPS says it has agreed strategies with some of its retail customers, including “shifting package volume away from the busiest shipping days, fully utilizing weekend capacity, and aligning promotional strategies with capacity.”

Many parcel delivery services have struggled with the surge in demand for shipments and have begun to impose measures to deal with the influx. Other shipping services such as FedEx (FDX) and USPS have increased their price premiums for vacations and hired thousands of temporary workers to handle shipments.

UPS says it has added 20 new facilities and 14 additional aircraft for peak season. It also extended its weekend operations and the speed of its delivery to the ground.

Meanwhile, Amazon (AMZN), one of the largest retailers in the country, has progressed without too many shipping issues with its own delivery service and drivers to accommodate its large number of shipments. Last weekend, Amazon reported making nearly $ 5 billion between Black Friday and Cyber ​​Monday, a 60% increase from last year.

– CNN’s Jordan Valinksy contributed to this report.

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