UPS’ revenues fell 6% y-o-y in 1Q 2023 to USD 22.9 bn, according to the company’s earningsrelease (pdf). The quarter’s revenues fall short of analysts’ average estimate of USD 23 bn, which “demonstrates that the economy is slowing and the company is seeing volume risk in 2023,” Third Bridge analyst Anthony DeRuijter said, Reuters reports. The company’s projected full-year revenues for 2023 are USD 97 bn, which is at the lower end of its previous forecast of USD 97-99.4 bn.

The explanation: Delivery firms are saddled with a bloated delivery capacity after the spike in online sales during the covid-19 pandemic started to dissipate due to high inflation, affecting discretionary spending. This could lead to a delayed recovery in volumes for the shipping industry, which was expecting relief in the back half of the year.

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