UPS Feeling Heat after Missing Deadline on Xmas Deliveries

Still waiting for Santa? You are not alone.

Holiday spirit turned to rage today as irritated consumers dealt with a third day of broken promises while UPS, the world's largest package delivery company, staggered to recover from a holiday crush that caught the service unprepared and left thousands of people short of gifts under their Christmas trees.

The delays certainly cost UPS good will, and analysts say they could also cost the company business if customers grow distrustful and choose other ways to ship.

The poor performance will make consumers think twice next holiday season about delivery promises and could boost the popularity of "buy online, ship to store" options that many stores offer, says retail brand strategy expert Ken Nisch, chairman of JGA, a firm that represents clients including Macy's, Godiva and The North Face. And retailers will have to reconsider guaranteeing delivery they can't control, he says. Amazon, the No. 1 online retailer in the week before Christmas, as measured by Experian Marketing Services, fulfilled its end of the bargain by packing its shipments and delivering them to the carriers "on time for holiday delivery," Amazon spokeswoman Mary Osako said.

"We are reviewing the performance of the delivery carriers," said Osako, who noted that Amazon refunded shipping charges for delayed packages and offered customers a $20 gift card for the inconvenience.

As irate customers vented their anger on the UPS Facebook page, the company responded to many by apologizing and asking for shipping information to get the packages on the right track.

UPS drivers did not deliver on Christmas Day, but sorters worked Christmas afternoon and evening to load planes at UPS' air hub in Louisville. Even so, UPS said, some packages that were promised to arrive before Christmas still wouldn't arrive until Friday.

"We're making every effort to get all the packages delivered," UPS spokeswoman Natalie Godwin said.

"Nearly all" the delayed packages would get to their destinations Thursday, she said.

UPS, which delivers more than 16 million packages a day to 220 countries, had expected an 8% increase in volume for the peak holiday season.

"Demand was much greater than forecast," Godwin said.

She did not say how many packages were affected by the delay.

UPS spokesman Jeff Wafford said some customers who paid for two-day delivery or faster may get refunds of the shipping charges.

Full Story Here