UPS gears up for peak season with less Amazon volume in tow

The carrier expects U.S. volume to dip year over year in Q4, but packages from other customer segments are projected to boost revenue.

As UPS gears up for its first peak season since slashing its Amazon volume in half, the company's push to attract more lucrative customer segments is bearing fruit, executives said during a Q3 earnings call Tuesday.

A little more than 100 of UPS' U.S. customers drive about 80% of the company's peak season volume spike each year, CEO Carol Tomé said. Based on forecasts from those shippers, UPS expects its average daily volume to climb about 25% from Q3 to Q4, in line with what the carrier saw last peak season.

However, Tomé said UPS is expecting its Q4 average daily U.S. volume to drop slightly year over year due to its planned reduction in deliveries made for Amazon, part of UPS' strategy to focus on more profitable customer segments like small businesses and healthcare shippers.

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