Shippers Anticipate Meeting Holiday Demand

Carriers such as the U.S. Postal Service, FedEx, and United Parcel Service are well-prepared to handle the expected surge in holiday shipping demands this season, providing a positive outlook for both shippers and consumers.

In contrast to the challenges faced during the height of the pandemic, this year’s holiday season is expected to be marked by smooth operations and fewer disruptions. Last year, as people stayed home and turned to online shopping, major carriers, including the Postal Service, grappled with staff shortages and a substantial increase in parcel shipments.

Louis DeJoy, the postmaster general, has expressed a commitment to making holiday season deliveries exceptionally efficient and consistent.

In total, the parcel industry boasts the capacity to deliver over 110 million parcels daily, even as the projected holiday peak remains at 82 million per day—slightly lower than the previous year, as reported by Satish Jindel of ShipMatrix.

However, it’s worth noting that shoppers are advised not to procrastinate, as this season holds immense importance, representing more than half of annual sales for numerous retailers. The National Retail Federation anticipates a 3% to 4% increase in holiday retail sales in 2023.

Black Friday, closely followed by Cyber Monday, remains among the most significant shopping days of the season.

For carriers, the holiday season also holds substantial significance.

United Parcel Service is well underway in its efforts to hire 100,000 seasonal workers to meet the heightened demand and ensure dependable service, according to John Mayer, a spokesperson.

Similarly, FedEx is actively recruiting for select locations and stands ready to handle the season, as affirmed by Christina Meek, a spokesperson. She added, “Our employees worldwide are prepared to meet the demands of this year’s peak season.”

Meanwhile, the U.S. Postal Service has hired an additional 10,000 seasonal workers and made infrastructure enhancements, including the installation of approximately 150 package sorting machines since the last holiday season. These improvements, along with other operational optimizations, have expanded their daily package handling capacity to 70 million, according to officials.

Projections indicate that both FedEx and UPS are expected to maintain on-time performance in the mid to high 90s, and the Postal Service aims to achieve a similar level of reliability, as per Jindel’s assessment.

Furthermore, shipping costs may be more favorable for certain retailers. While the U.S. Postal Service has opted not to impose holiday surcharges, FedEx and UPS have implemented surcharges for deliveries between now and January. Nevertheless, Jindel predicts that approximately half as many shipments will be subject to surcharges compared to the previous year, with some rates being lower.

Frequently Asked Questions (FAQs) about Holiday Shipping

More about Holiday Shipping

• U.S. Postal Service
• FedEx
• United Parcel Service (UPS)
• ShipMatrix
• National Retail Federation