UPS, FedEx prepare ahead of impending storm

By Samantha Bomkamp

Associated Press

Saturday, August 30, 2008

NEW YORK -- Shippers UPS Inc. and FedEx Corp. said they are making plans to implement contingency procedures for when Hurricane Gustav hits the U.S.

FedEx spokesman Jim McCluskey said the Memphis-based shipper has a staff of meteorologists on site and is keeping its air- and ground-based fleets "in the loop" with information.

He noted the company is taking a "proactive approach" to judging possible contingency plans. McCluskey said that if the storm hits, the company may choose to evacuate its employees ahead of local evacuation orders.

UPS spokeswoman Susan Rosenberg said the company also has a meteorology group, based in Louisville, Ky., monitoring the situation. Contingency teams are in place to deal with the storm when it hits, she added. Facilities are currently operating normally.

Late Saturday, Gustav crossed western Cuba into the southern Gulf of Mexico with winds near 140 mph. The storm could further intensify as it reaches the warm Gulf of Mexico waters.

Shares of FedEx rose $2.67, or 3.3 percent, to $84.19 in afternoon trading, while UPS gained $1.47, or 2.3 percent, to $64.99.