Amazon Shipping Delays, Who Dropped the Ball?

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Dec. 26 (Bloomberg) -- UPS and FedEx said they are experiencing some delays as rising online retail orders contributed to deliveries overwhelming capacity. Julie Hyman reports on Bloomberg Television's "Bloomberg West."(Source: Bloomberg)

Ups says volume outpaced capacity.

That who really dropped the ball?

It looks like it was a combination of more than anticipated demand that also the weather.

There were a couple of days where bad weather basically grounded planes and just like if you are at an airport, if you get enough planes that are grounded, things start to back up and it takes a while to cleared out of the system.

If you have a lot of packages, it takes a while to clear that.

That may have been part of what was responsible for this.

It is curious what we're hearing in terms in the higher than estimated demand.

Ups prepared for a lot of demand saying that in this final week until christmas it was going to ship 132 million packages and i had hired 55,000 people and also planes and basically doubled its ground shipping fleet of trucks.

It had prepared for a surge in demand.

We are just getting numbers that say the final online shopping week was actually softer than anticipated.

A little bit confusing in this first day following christmas as we figure out what happened.

Ups is that most of the packages not delivered on christmas should be delivered by today.

We also know that fedex says it had some issues but they were limited.

It is interesting because bloomberg television went inside ups and they expressed a lot of confidence in their delivery of these packages.

Talk to us about the reaction from amazon and other retailers.

Amazon saying it is not our fault but we are going to give you a break.

Giving a break but looking at is what is going on.

We have a statement from amazon, fulfillment centers intended to deliver on time for delivery.

We are reviewing the performance of the carriers, ups and fedex.

Amazon trying to make good on its end, offering those $20 gift cards and shipping refunds.

Koh'hl's said it would refund the price of the item if it was not delivered on christmas.

The question is, is there any threat to amazon and ups and fedex?

Analysts are saying not really.

Amazon is very dependent on these carriers.

There are not others with a nationwide system that will help it get the packages to where they need to be and if amazon wanted to build its own network, that would take time and money.

Julie hyman, thank you for bringing that does have date --

This text has been automatically generated. It may not be 100% accurate.


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