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UPS expects double-digit surge in Dec shipments

By WTOP Staff

DAVID KOENIG
AP Business Writer

DALLAS (AP) — UPS might levy surcharges or even turn away some holiday shipments this year if retailers surprise the delivery giant by dropping off more packages than they had planned.

UPS executives discussed the possibilities Friday as they detailed plans for improving on last holiday season, when many consumers didn’t get their packages by Christmas as promised.

Online shopping is growing faster than the store-based kind. That’s good for United Parcel Service Inc. and FedEx Corp., and on Friday, UPS predicted that December shipments will rise 11 percent over the same month last year.

Atlanta-based UPS offered the forecast while reporting that third-quarter net income rose 11 percent to $1.21 billion, or $1.32 per share, beating Wall Street expectations of $1.28 per share. Revenue was $14.29 billion, topping analysts’ forecast of $14.20 billion, according to FactSet.

In afternoon trading, UPS shares rose 25 cents to $100.73.

The delivery companies have learned that with the opportunity presented by online shopping, there are also challenges. Last year, a surge in late orders overwhelmed them and resulted in an estimated 2 million express packages missing their Christmas Eve delivery deadlines. About 1.3 million of those were UPS packages, according to tracking-software firm ShipMatrix Inc., which said the retailers were at fault about 70 percent of the time for overpromising on last-minute guaranteed deliveries.

UPS has spent the year bulking up facilities and technology, and talking to retailers to better predict shipping volumes this holiday season.

On Friday, the president of U.S. operations for UPS, Myron Gray, said that if retailers exceed their shipping quotas, UPS might “mute what they are giving to us.” The company’s chief commercial officer, Alan Gershenhorn, said there could be surcharges.

Asked to clarify the remarks, UPS officials said they would first work with retailers to reschedule unexpected shipments but might have to turn some away. Surcharges would be possible for shipments that force UPS to hire more truck drivers or reserve airfreight capacity, they said.

UPS Chief Financial Officer Kurt Kuehn told The Associated Press that some retailers who jumped into e-commerce last year “perhaps got a bit overzealous with their promotions and made some commitments for delivery with virtually no room for error.”

Kuehn said that some retailers delivered shipments to UPS “at the last minute,” but that UPS made mistakes too. He said he was confident that the company will perform up to expectations this time around.

UPS expects to spend $175 million on temporary facilities and add up to 95,000 seasonal workers to handle the holiday crush.

___

AP Business Writer Michelle Chapman in New York contributed to this report.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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