Market Overview

Cramer On Why FedEx, UPS Can't Build Operations 'Around A 48-Hour Period'


Two of the biggest logistics companies -- United Parcel Service, Inc. (NYSE: UPS) and FedEx Corporation (NYSE: FDX) -- are capping air express deliveries after some retailers breached their pre-agreed limits on back of last-minute surge in orders.

CNBC’s Carl Quintanilla reported on this, while Jim Cramer provided his perspective.

"UPS and FedEx, there is not a lot of corporate news today, but they are limiting the number of air express deliveries. They do not want a repeat of what they had last year," Quintanilla said.

Cramer added to that saying, "I guess there is nothing you can do when the Internet took off, it’s almost impossible. Do you really build your whole operation around a 48-hour period? You really can’t. I mean, you can’t afford to do that. You can’t say ‘listen, we are going to run it peak and then we are going to fire everybody the next day,' but they do have a lot of part-time workers and by the way those are great jobs for kids who have a little college break."

Quintanilla highlighted that UPS is going to make 585 million deliveries in the month of December alone.

Cramer emphasized the opportunity that logistics companies like UPS and FedEx provide during these peak season to people.


Related Articles (FDX + UPS)

View Comments and Join the Discussion!

Posted-In: Carl Quintanilla CNBC Jim CramerMedia