In this paper, we study the stochastic collocation (SC) methods for uncertainty quantification (UQ) in hyperbolic systems of nonlinear partial differential equations (PDEs). In these methods, the underlying PDEs are numerically solved at a set of collocation points in random space. A standard SC approach is based on a generalized polynomial chaos (gPC) expansion, which relies on choosing the collocation points based on the prescribed probability distribution and approximating the computed solution by a linear combination of orthogonal polynomials in the random variable. We demonstrate that this approach struggles to accurately capture discontinuous solutions, often leading to oscillations (Gibbs phenomenon) that deviate significantly from the physical solutions. We explore alternative SC methods, in which one can choose an arbitrary set of collocation points and employ shape-preserving splines to interpolate the solution in a random space. Our study demonstrates the effectiveness of spline-based collocation in accurately capturing and assessing uncertainties while suppressing oscillations. We illustrate the superiority of the spline-based collocation on two numerical examples, including the inviscid Burgers and shallow water equations.