UPS, FedEx Struggling to Keep Up With Holiday Volume
It's only halfway through December and UPS and FedEx are already having a hard time keeping up with the holiday season. Shipping volumes have blown past expectations, delaying the delivery of some of the millions of orders customers have placed online since Thanksgiving. The Consumerist reports UPS had been expecting to handle a record 700 million packages this holiday season, a 14 percent increase from last year, while FedEx predicted a 10 percent bump. To cope with the surge in package volume, UPS has relocated hundreds of employees from its headquarters and corporate offices to pitch in at hubs that are overwhelmed with record demand, The Wall Street Journal reports.
Total Retail's Take: 'Tis the season for shipping! While I'm not surprised UPS and FedEx are having some issues this holiday season, it does seem like a small improvement from last year. Both companies made conscious efforts to boost staff and frequency of shipments for the busy holiday season. That said, it's hard to predict the volume of shipments as more and more consumers choose to shop online rather than in-store. Furthermore, the two shipping carriers are under immense pressure to deliver packages — i.e., gifts — in time for the holidays. Unfortunately, there are bound to be customers disappointed from late deliveries.