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United Parcel Service Inc. this week imposed shipping restrictions on some major retailers such as Gap Inc. and Nike Inc., an early sign that the pandemic-fueled online shopping season is stretching delivery networks to their limits.
Delivery giant Cyber Monday notified drivers across the United States to stop picking up packages at six retailers, including LL Bean Inc., Hot Topic Inc., Newegg Inc. and Macy’s Inc. , according to an internal post seen by the Wall Street Journal and confirmed by UPS workers in different regions. “No exceptions,” the message reads.
The move comes during the holiday season, when retailers increasingly rely on delivery companies to place orders online as store traffic plummeted during the coronavirus pandemic – a dynamic that has dramatically shifted power. UPS and its rival FedEx Corp. raised prices and promised to force traders to stick to volume agreements.
The temporary limits, which some drivers say they haven’t seen in previous holiday seasons, are a sign UPS is measuring the flow of packages through its network to maintain performance during one of the busiest shipping weeks in the world. the year. The National Retail Federation estimated that online shopping jumped 44% in a recent five-day period that included Black Friday and Cyber Monday.
A UPS spokesperson, without commenting on any customer-specific guidance, said the company will pick up packages from customers whose demand exceeds the allotted space once capacity becomes available again. Shipping levels tend to jump the week after Thanksgiving and then slide a bit to another big increase in the week before Christmas.
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