UPS expects nearly 70% of packages during the holiday peak to pass through automated sorting inside its buildings, CEO Carol Tomé said on the Oct. 27, 2026 third-quarter call, while drivers still deliver every box. The company is shifting to a sensing network based on RFID tags, which are active at 315 customer locations and are expected to reach 6 million packages a day in 2027, replacing manual scans. A little over 100 U.S. customers account for about 80% of the peak, and fourth-quarter daily volume is expected to fall 1.3% year over year as UPS cut volume from Amazon. U.S. Domestic daily volume fell to 15.621 million pieces from 16.150 million, yet adjusted margin rose to 7.0% from 6.4%, even as cost per piece rose 5.5%. The article notes that dividend coverage is tight, with free cash flow guidance of about $6.1 billion against planned dividends of around $5.4 billion.
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