FedEx, UPS Planning Record Holiday Deliveries

Date: December 19, 2016

Shippers Say Demand For Volumes Rising Throughout Season

The Boston Herald reported that shipping companies are “gearing up for record shipping days heading into Christmas and Hanukkah” as online shipping volumes surge throughout the holiday season. FedEx spokeswoman Rae Lyn Rushing said, “FedEx anticipates another record peak holiday shipping season, with each of the four Mondays during the season expected to be among the busiest in our company’s history.” CNBC On the Money reported that worker’s at FedEx’s world hub in Memphis refer “to the massive sorting facility” as “The Matrix.” The 880 acre facility has “42 miles of conveyor belts sorting more than 2 million packages each day,” with that number spiking during the busy holiday season. The article notes that overall FedEx has predicted that “it will handle 355 million packages between Thanksgiving and Christmas.”

USA Today reported that both FedEx and UPS have “remained unfazed” by the nearly doubled daily package deliveries this holiday season, which have “hit record highs this year.” FedEx spokesperson Patrick Fitzgerald noted, “The rise and rapid growth of e-commerce…is certainly driving the demand in residential deliveries.” The article noted that “so far, both shippers are getting most deliveries to recipients’ homes on schedule.” USA Today added that free shipping offers to lure “shoppers, and the influence of Amazon, are also spurring more people to pick out items on their laptops or smart phones, and then wait for them to arrive.” According to ShipMatrix, between December 4th and 10th, FedEx had an on-time rate of 96.2 percent and UPS had a rate of 93.1 percent.

What This Means For Small Businesses

Many small businesses, particularly retailers, across the US rely on the holiday season to provide a large chunk of annual revenue as customers seek gifts for family and friends. News that shippers are expecting higher volume this year is good because it indicates healthy consumer spending. However, it also means small businesses should be more prepared than ever to inform customers about shipping options to avoid the potential for goods arriving after the holidays.

Additional Reading

Detroit Lakes (MN) Online also covered the story.

Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.

 

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