/UPS Imposed Shipping Limits on Retailers Ahead of Holiday Shopping Season

UPS Imposed Shipping Limits on Retailers Ahead of Holiday Shopping Season

As the Coronavirus pandemic wages on into the holiday season retailers are doing everything in their power to drive online sales while instore traffic dwindles. Cyber Monday is the largest online shopping day of the year, shoppers wait to try and score great deals on items all from the comfort of their own homes. However, as shopping online become even more common it seems delivery giant UPS was not ready to handle Cyber Monday in 2020. UPS reportedly told drivers not to pick up packages at some of Americas largest retailers like Gap and Nike after they reached capacity allocations set by the company

UPS had set “specific capacity allocations” for its customers over Black Friday weekend and throughout the holiday season as it works to deliver packages at record volumes, Glenn Zaccara, UPS’s director of media relations, told CNBC Wednesday.

“We’ve worked with our large retail customers to ensure they are aware of how much capacity is available to them,” Zaccara said. If the demand exceeds the planned allocations, UPS will “work with our larger customers to ensure the volume gets picked up and delivered as more capacity becomes available in our network,” he said.

L Brands CEO Andrew Meslow was asked about the shipping caps at an investor conference hosted by Morgan Stanley Wednesday, and he described the situation as “challenging.”

“We’ve been pleased with our ability to fulfill and to ship,” Meslow said. “But there are still several very, very important needs. Everyone’s shipping cutoff is in mid-December and we’re sitting here on Dec. 2, so call it another two weeks of really high volume that we need to clear and make sure that both facility and shipping network continues to stay very, very productive.”

For more, keep reading at CNBC.