After an astronomical first quarter, UPS will be implementing more weekend deliveries to alleviate the E-commerce boom and keep up with FedEx’s weekend deliveries.
UPS CEO Carol Tomé released statements regarding projections of UPS deliverability, citing that UPS will be able to deliver to 90% of the residential population by October. As of right now, deliverability stands around 75%.
While UPS currently has nearly no presence on Sundays, the delivery will be expanded in conjunction with the U.S. Postal Service to reduce potential overloading of packages.
"Expanding our network across seven days, we can actually eliminate some of the lumpiness in the network in the middle of the week," Tomé said. "If we can flatten out the demand, we can really get some great productivity."
Image by Chris Leipelt
Looking Into 2021
According to UPS, a year-over-year analysis concluded that Q1 of 2021 saw a 14% increase in volume over 2020.
According to UPS CFO Brian Newman, the volume increase could be attributed to two different reasons, vaccine distribution across the United States, as well as the latest stimulus grant. The latest stimulus grant is expected to boost US retail sales up to 12%.
Due to the pandemic, overall parcel volume and distribution reached their highest since 1997, with UPS gaining nearly 10.2% revenue per package since the beginning of the pandemic.
While shipping companies have been slammed for a complete calendar year at this point, companies have been struggling to keep up with current demand, citing a lack of qualified drivers and distributors available.
With COVID-19 restrictions slowly being lifted across the country, shipping companies can expect to stay busy regardless of more open businesses.
More information over UPS's next steps for 2021 can be found here, with a detailed transcription and guide to future endeavors.
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