A United Parcel Service driver unloads cargo in the Lincoln Park neighborhood in Chicago, Illinois, US, on Monday, November 30, 2020.
Christopher Dilts | Bloomberg | Getty Images
United Parcel Service reported a 23% rise in quarterly profit on Tuesday, boosted by rising e-commerce demand that has allowed the delivery company to raise shipping rates and select more profitable customers.
UPS and rival FedEx have been offering a record number of e-commerce packages since the Covid-19 switch to online shopping.
Both have added surcharges to house profits to offset the higher cost associated with home delivery, and are now grappling with the sharply higher cost of hiring and retaining reliable drivers.
UPS’s third-quarter operating profit rose to about $2.9 billion, or $2.65 per share, from $2.36 billion, or $2.24 per share, the company announced a year ago.
The company also raised its full-year adjusted operating margin target to about 13% from about 12.7%.