UPS: outlook unclear, so no peak package forecast

By Nick Carey

CHICAGO, Nov 16 (Reuters) - United Parcel Service Inc , the world's largest package delivery company, will not issue a peak shipping volume forecast for the coming holiday season, saying that the current economic environment makes it difficult to issue an accurate projection.

"While it is a bit unusual for UPS not to make peak projections, these are unusual times for the U.S. economy," company spokesman Norman Black said in an email to reporters.

Black said that early indicators such as a 2.8 percent drop in October U.S. retail sales made "any projection difficult."

"UPS is well prepared behind the scenes to ensure the highest levels of customer service and we intend to provide the best service in the industry," he added. "We're just not comfortable making public projections this year."

Atlanta-based UPS ships an average of 15 million packages daily. Last year the company forecast that it expected to handle 22 million packages on its peak shipping day, which always falls during the week leading up to Christmas.

Like Memphis-based FedEx Corp , UPS is considered a bellwether of U.S. economic activity, based on the simple premise that in a healthy economy companies and consumers ship and order more goods.

FedEx has not yet issued a forecast for its peak shipping day for this year.

Just this past week DHL, the express delivery unit of Deutsche Post AG , announced that it was shutting down its U.S. domestic service as of Jan. 30, with the loss of 9,500 jobs.

DHL bought Airborne Inc in 2003 with the aim of taking on UPS and FedEx on their home turf. But after five years of an uphill struggle against the brand recognition and dominance of its two U.S. rivals, DHL said the slowing U.S. economy had made it impossible to continue. (Editing by Tim Dobbyn)