Parcel Profits Slumping

From the Wall Street Journal: Transportation operators are struggling to realign their networks to the big swings in shipping demand.

The challenge is evident at United Parcel Service Inc. as the delivery giant slashes its capital spending by $1 billion and takes other measures to conserve cash, the WSJ’s Paul Ziobro reports, even though revenues and volumes in the company’s U.S. package business surged in the first three months of the year.

The growth included a nearly 70% gain in home deliveries during the quarter, a surge driven by the rush toward e-commerce under coronavirus-driven restrictions on business. That has cut deeply into UPS’s margins because those parcels are more costly to handle than business-to-business volumes, a key reason the company’s first-quarter profit sank 13% from a year ago.

Source: WSJ Logistics Report

  • Michael Moore

    I’m sure that there lack of coustomer care has lead to them having financial problems. They throw packages leave them in the rain without even knocking or ringing doorbells anymore. Its a pure lack of decent employees.

  • Paladin

    Cut deeply into margins? That’s a bold faced lie, parcel volumes are up 20-25 percent because of the Corona virus. It’s up so much that they can’t even clear all the incomming and outgoing trailers in major metros. STOP with the lies!

  • Ben Franklin

    I concur, parcel volume is up but profit on that parcel is down. The postal service needs a lifeline from Congress. When will that happen?