FedEx, UPS “Upbeat” About Holiday Deliveries, But Some Delays Happening

Date: December 24, 2015

ShipMatrix Survey Finds Most Delays Happened Week Of Cyber Monday

The Los Angeles Times reported that shipping data tracker ShipMatrix found that FedEx delivered 95 percent of its packages during the week of Cyber Monday on time, while UPS only managed to deliver 91 percent of its shipments on time. However, both companies increased their on-time percentages the following week, as FedEx edged up to 95.3 percent while UPS delivered 93.2 percent of packages on time. On its own, UPS “is expected to deliver 420 million packages in the U.S., while FedEx Corp. probably will deliver 228 million.” This represents volume around “8% higher compared with last year — a boost that is consistent with the growth of e-commerce,” according to ShipMatrix President Satish Jindel. Meanwhile, the US Postal Service will “handle the highest number of packages this month in the U.S., with 545 million,” according to ShipMatrix.

Despite this news of shipping delays, eCommerce Bytes reported that FedEx, UPS, and the US Postal Service are “upbeat” that they will make their holiday deliveries on time by Christmas. FedEx spokesperson Gretchen Mathis said, “Our networks are performing as designed and we’re working hard to absorb the extra volumes as this record number of holiday shipments flow through our global networks.” Mathis continued, “We’re extremely proud of our team members around the world who continue to help the holidays arrive.” The piece mentions that FedEx’s peak day was December 14, when it processed a record 26 million packages. UPS spokesperson Susan Rosenberg said UPS has “worked closely with the large retailers and have reinforced that we are staying with their committed volume levels this week to keep our network operating efficiently.”

What This Means For Small Businesses

The holidays are a time when many American shoppers seek to take advantage of year-end deals and unique gifts found at small businesses. Today’s consumers expect faster, cheaper shipping options than ever before for sending and receiving gifts. News of shipping delays is worrisome, since small businesses count on shippers to operate as cost-effectively and quickly as possible.

Additional Reading

The New Orleans (LA) Times-Picayune also reported on the ShipMatrix shipping data.

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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