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UPS limits shipping from some retailers as holiday shopping season heats up

UPS limits shipping from some retailers as holiday shopping season heats up
Posted at 11:37 AM, Dec 04, 2020
and last updated 2020-12-04 16:24:59-05

UPS has reportedly told its drivers to stop picking up packages from several national retailers as they try to keep up with record-breaking online shopping this holiday season.

Online shopping has seen record highs in 2020, as people heed public safety warnings during the coronavirus pandemic and avoid shopping in person.

The National Retail Federation estimates online shopping during the five-day period including Black Friday and Cyber Monday jumped 44 percent. Adobe Analytics estimates online shopping on Thanksgiving and Black Friday were both up 22 percent compared to last year, and that Black Friday was the highest-grossing online shopping day in history.

An internal memo at UPS, obtained by the Wall Street Journal, indicates the company placed temporary shipping restrictions on retailers like Nike, Gap, Macy’s, L.L. Bean and others. The message reportedly tells drivers to stop picking up packages at some of these retailers for the time being.

"Knowing the unique constraints the industry is facing this peak season, we worked with our carriers early on to collectively build a strategic plan of execution," Gap said in a statement to CNN.

A Nike spokesperson told media: "We expect the majority of these orders to meet estimated delivery dates and are communicating with consumers any changes in delivery."

A UPS company spokesperson told the WSJ they will pick up packages who have exceeded allocated space once more capacity becomes available.

UPS and rival FedEx have already raised prices for merchants and said they would hold merchants to shipping volume agreements.

The United States Postal Service is also trying to manage the increase in packages, increasing pricing for companies and hiring thousands of temporary workers to handle the deliveries.

For those wondering, here is a look at the 2020 holiday shipping deadlines per delivery company.