UPS and FedEx Experience Some Delays in Holiday Shipping

Online shopping surge might be why some packages didn't get delivered in time for Christmas.
3:00 | 12/26/13

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Transcript for UPS and FedEx Experience Some Delays in Holiday Shipping
-- watch live coverage of Dallas. Freed about the -- this afternoon the folks from traders magazine all in honor 2013 and Wall Street women towards me. And so trading concludes fourth -- Thursday. December 26 everyone I'm Dan Butler and New York. The record rally on Wall Street really showing no sign of stopping in fact good jobs data. Other economic indicators pushing stocks up again today the biggest bump. For the down -- coming from ExxonMobil -- the blue chip index into a triple digit gain. Twitter also up 5% in fact today now trading at 73 dollars a share not bad for company that. So has yet to make a profit twitters market cap value. It's now forty billion dollars and so we see how the Dow will be -- -- today today certainly in positive territory up 122 points. At 161479. Speaking of the holidays folks finally getting the president's. The had been missing under their Christmas trees UPS and FedEx both could not complete their shipping orders in time for Christmas. The from Armstrong want to bring in ABC's -- accuracy in New York following the latest on this Erin. Unfortunate a lot of people were kind of left wondering what was going time. Potentially millions UPS was supposed to deliver 132. Million packages the week before Christmas. And many of them didn't get there. UPS said it was a small percentage but even a small percentage of 132. Million. It's a lot of packages that weren't under the -- so if you're have been dazzled sweatshirt didn't get there on time Dan you're undoubtedly disappointed and maybe you've taken to Twitter or FaceBook to complain we've seen. Posts that have called UPS the grange of this year's Christmas. What happened was this UPS was simply overwhelmed -- -- By VV surge the unexpectedly large surge in online shopping and we've seen estimates today. That e-commerce went up this holiday shopping season anywhere from 10% to almost 17%. Over last year. But it's more than that. It's those last minute -- that really seems to have done the delivery service in. People who made their purchases within the two week period leading up to Christmas expecting their gift to get there on time UPS's suggest under projected the volume that it would be doing this here. And I will have you know -- rest assured I did order my bedazzled sweater far in advance late November I think -- what it wisely to match the -- ordered the previous here in all seriousness now. UPS and FedEx and they say exactly how many people were affected by this -- they've only sent a small percentage but if you you look at the numbers UPS doing. 132 million packages that the last week before Christmas that -- -- it handled 275. Million packages. Leading up to Christmas of this -- a lot of moving parts. And for the most part FedEx today said that it'd made good 99% of the time. And for the of those customers that did not -- the package delivered they could pick it up at a at a counter. But having said that this could. Potentially undercut the trust that customers place in businesses. Whose stock in trade -- logistics and reliability. And overall we've talked to some analysts who believe this could undercut faith in e-commerce overall you make a click do you expect your purchase to arrive. When you say it will -- today tried to -- some ruffled feathers offering a twenty dollar gift card and some free shipping. UPS said it would give a refund customers who had paid for guaranteed delivery. And now it's just after the customers to wait by today -- tomorrow UPS says it should have all the late packages where they're supposed to be. Get -- -- the fact matters if it's weather beaten weather related which it does not appear to be in their clearly -- that is the last minute those that had waited for the eleventh hour of point and click and try to make some smiles on Christmas Day UPS FedEx Amazon all those stocks surged today. And it because of this shipping problem being from this increase in online ordering that Scott at least show some promise for that industry obviously. Moving some attention away from the brick and mortar stores well look -- if people are buying and sales are going up and and we heard from MasterCard spending post today that retail sales overall. Up 2.3 percent other data trackers so are set to report probably higher percentages than that. That means people are spending and and and the retailers were able to -- -- headwinds of bad weather and some of the UPS delays to be fair word to the what I stormed out of Dallas. But retailers overall -- able to -- the bad weather leading up to Christmas and also the fewer shopping days between Thanksgiving and Christmas that crammed everything together. And they did it basically would deep discounts a lot of promotions they hadn't done so many promotions in the months leading up to Christmas but by. In October November you couldn't turn on the radio watch television -- open a newspaper without. Seeing some reminder that Christmas was coming few bright -- was speaking of brick and mortar retailer giant target obviously suffered its own set of setbacks. -- given the fact that. For about a two week period following Thanksgiving about forty million of its credit and debit card customers had their accounts compromised. They obviously -- do some damage control on this offering a discount for a certain period of time over the last weekend to try to reassure. Those customers that in fact their information was secure within the system but what's -- what's the latest right now. -- -- today from New Jersey senator Bob Menendez who sits on a number of committees that touch this problem and he's calling for. The Federal Trade Commission to be robust and its investigation of target. We don't know yet. Whether this was a breakdown of targets security. Or whether this would reach was so sophisticated. That the best defenses couldn't have have with stood -- so until we get to the bottom of of that key question. It's a little bit early for referring to investigators to -- pounding down the door. And yet they're going counting -- the door and so target says it's focused on trying to make sure that its customer data. Is secure and focused on reassuring customers that there information is going to be safe -- place -- their card because that ultimately is a key. Component of brand loyalty security have to think -- the when you're going to target. Your information when you swipe your card is going to be well preserved and if it needs to be legislation senator Menendez -- willing to to propose some. If it needs to be the Federal Trade Commission or prosecutors around the country from attorneys general offices. Then that they're willing to pursue that as well making sure your credit card information is secure make teacher that your shipments get there on time because if you order -- -- -- sweater. Doggone it you better get it. People wanted to at -- he -- that stuff and this is you know these are companies. Where we're in loyalty is built on reliability. And to some degree logistics and and this is that the key you know this is the C approval for retailers. And an a couple of them seem to have missed the mark -- trying to get back in the good graces of consumers yet hopefully his there was look at the benefits from that scramble ABC's characteristic -- latest on that Aaron thank you for that we appreciate that. Of course -- report right here on And Dan -- and you know much in the closing bell report.

This transcript has been automatically generated and may not be 100% accurate.

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