Fri. Nov 8th, 2024

Parcel carriers post strong early holiday delivery performance

December 9, 2022

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The major parcel-delivery carriers reported high on-time performance rates through November, which included Black Friday and Cyber Monday when holiday shopping spikes, consultancy ShipMatrix said Thursday.

In its survey, ShipMatrix said the three major carriers — FedEx Corp., (NYSE: FDX), UPS Inc. (NYSE: UPS) and the U.S. Postal Service — performed better this early holiday period than in 2021, when online demand was higher, capacity was tighter and FedEx’s ground delivery unit, FedEx Ground, struggled with labor shortages at its hubs. FedEx Ground said it has resolved the labor issues that plagued its operations in 2021.

From Nov. 24 through Nov. 30, the periods that encompassed the two big shopping days, UPS delivered 96.6% of parcels on time. That was followed by the Postal Service at 95.8% and FedEx at 95.3%. During the same period in 2021, UPS delivered 96.1% of parcels on time, the Postal Service 95.5% and FedEx 83.9%.

Average daily parcel volumes reached 90 million between Thanksgiving and Cyber Monday and hit 100 million on Cyber Monday itself, ShipMatrix said. The consultancy predicted that daily volumes during the peak period will average about 92 million parcels, while capacity could exceed 110 million parcels. Peak-season delivery volumes were expected to drop dramatically over the past two years as consumers increase their buying in stores and rising inflation constrains their gift-giving budgets, ShipMatrix said.

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