Fox News live reports that, "No one has been shot".
One of the hostages had a prior relationship with the suspect, the prosecutor said.
An officer answering the phone at Logan Township police confirmed that a SWAT team had been dispatched to the scene. Another woman is reportedly the other hostage.
Gloucester County officials say 32 employees were inside the facility at the time of the incident.
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SWAT teams have been seen outside the facility, with a UPS spokesman tweeting: 'We are working with law enforcement as they respond and can not provide information about the identity of people involved at this time'.
The incident was reported at around 9 a.m. Monday at the warehouse on Birch Creek Road in the Logan Township of Gloucester County, WABC-TV reported. "We can not provide information about the identity of people involved at this time", the company said in a statement to Fox News.
The Logan Township School District said schools are on modified lockdown.
New York City police said they are also monitoring the situation.
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