Record surge in daily shipping volumes for UPS in 2Q

Source: AP

UPS is reporting a profit of $1.77 billion with the pandemic fueling a 21% surge in daily shipping volume, the largest quarterly increase ever recorded by the company.

The daily volume of goods shipped to homes, items that last year might have been purchased in stores, soared 65%.

“Our results were better than we expected, driven in part by the changes in demand that emerged from the pandemic, including a surge in residential volume, COVID-19 related healthcare shipments and strong outbound demand from Asia,” said CEO Carol Tomé.

With thousands of retail stores ordered closed for safety reasons, the wave of new shipments to homes have swamped both UPS and its rival, FedEx. Toilet paper, cans of soup, candy, any type of impulse buy once made in stores, are being bought online and shipped rather than carried out of a store in a bag.



FILE - In this Dec. 19, 2018, file photo packages await delivery inside of a UPS truck in Baltimore. United Parcel Service Inc. reported a 13% drop in first-quarter profit, to $965 million, as stay-at-home orders generated deliveries to people’s homes but not enough to offset the higher costs and a drop in business deliveries. UPS said Tuesday, April 28, 2020 that the coronavirus outbreak has created “significant headwinds.” (AP Photo/Patrick Semansky, FIle)


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