UPS shares fell to the lowest in three months this week after domestic US volume in its second quarter dropped 2.9%, and ground shipments specifically were down 4% on the previous year.
Average daily volume was down 0.8%, due mainly to the fall in domestic demand. The average daily volume for business-to-consumer shipments was down 15.8%.
However, business-to-business shipments were up 25.7%, and daily international shipments were up 12.7% year on year.
UPS has been taking on a “better, not bigger” approach this year, focusing on small business and higher margin shipments rather than sheer volume.
Despite falling volume, the company reported record earnings in the second quarter, with a 14.5% increase from 2020 to $23.4 billion.
In the same quarter, Amazon’s core e-commerce business grew 15%, which is the slowest rate since 2019. Amazon shares fell about 7% after the news.
Amazon’s chief financial advisor, Brian Olsavsky, said that in the United States and Europe especially, “people are getting out more, doing other things besides shopping.”