UPS: Over two-thirds of US volume now handled by automated locations
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The carrier is increasing its use of automation in a bid to reduce package handling costs and more flexibly adjust capacity. Over the past several years, UPS has been making steady progress toward a more automated U.S. network that is less reliant on manual labor to move and sort packages. Examples of automated technology UPS has deployed include trailer unloading systems and vehicles that can move irregularly sized shipments through facilities. The carrier's automation push hasn't slowed down this year. Tomé said in a January earnings call that UPS would introduce 24 more automated buildings to its network in 2026, adding onto its existing roster of 127 buildings. The recent automation progress comes just as UPS has wrapped up its Amazon delivery reduction initiative, reducing its average daily volume delivered for the e-commerce giant by about 2 million packages since the undertaking kicked off in 2025. Tomé said on Tuesday's call that the now-removed Amazon volume was "lower quality," adding that UPS' U.S. network is now reconfigured and further automated for more lucrative business. "We now have a leaner, more automated, more agile network that will deliver operating leverage as volume grows," Tomé said. Automated hubs allow UPS to adjust capacity more flexibly than it can with conventional facilities, EVP and CFO Brian Dykes said on the call. The carrier has been...
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