UPS Eyes 3% Q4 U.S. Revenue Growth as Amazon Volume Cuts Ease Peak Season

UPS expects U.S. fourth-quarter revenue to rise 3% year over year even as average daily U.S. volume dips slightly, as the carrier enters its first peak season since halving its Amazon volume, executives said Tuesday on the Q3 earnings call. Revenue per piece rose 6.1% in Q3 despite a 3.3% decline in average daily volume. Small- and medium-sized business shippers reached 35.1% of total U.S. volume, up about 240 basis points from a year earlier, while healthcare-related revenue topped $3 billion for a third straight quarter. UPS projects average daily volume to climb about 25% from Q3 to Q4, with roughly 100 U.S. customers driving 80% of the seasonal spike. CFO Brian Dykes said the lower Amazon volume means less trailer and aircraft leasing and fewer seasonal hires; UPS still plans to bring on 100,000 holiday workers. About 1,500 drivers accepted buyouts in Q3. Starting Nov. 16, UPS offers PIN-based Protected Delivery at $10.70 per shipment.