Community Chat

[Marp]

This Holiday Crunch Starts Early With More Packages Than Means to Deliver Them

FedEx, UPS and smaller carriers turn away customers as they brace for surge of online orders

One holiday item that is already sold out: shipping capacity.

Both FedEx Corp. FDX 0.62% and United Parcel Service Inc. UPS 0.23% have told some of their largest shippers that most of their capacity is already spoken for, and that any extra trailers with holiday orders will have to wait to be picked up, according to shipping consultants and retailers.

“There will be days within the holiday season where the industry will be over capacity,” FedEx Chief Marketing Officer Brie Carere said in an interview.

The outlook has sent retailers on the hunt for alternatives with little luck. Smaller carriers in the U.S. like LaserShip Inc. and DHL eCommerce Solutions said they booked up their capacity for the holidays months earlier than usual and aren’t taking new customers until next year.

The final safety valve is the U.S. Postal Service, whose finances and network have been stretched during the coronavirus pandemic and could come under more pressure if shippers dump their overflow orders into the agency’s network.

“Everybody’s in the market looking for more capacity,” said Tim Geiken, principal at Platinum Circle Partners LLC, a logistics consulting firm. “With minimal exceptions, nobody is finding it.”

The capacity shortfall could average as much as seven million packages a day between Thanksgiving and Christmas, estimates ShipMatrix Inc., a software provider that crunches parcel shipping data. Satish Jindel, the firm’s president, estimates that total shipping capacity for the industry will be 79.1 million parcels a day during that period, with 86.3 million packages looking for space. Last year, total capacity was 65.3 million packages with 67.9 million looking for space.

MORE info:  wsj.com/articles/this-holiday-crunch-starts-early-with-more-packages-than-means-to-deliver-them-11603013401

[Cakers3]

It might be better to send out e-gift cards this year if possible.

Even my little granddaughter likes to shop online.

I realize there are relatives and friends far away who may be under the care of others and I realize there are small children who like to open a gift.

However, for the sake of *your* sanity it might be better to downsize the number of packages you will send this season.  Also to reduce disappointment if packages end up late.

I believe this is why there is such a push for Christmas here and elsewhere.

I normally do not do my shopping, even online, until around Thanksgiving but my shopping was completed in July.  Downsized, too. 

Good luck everyone.

[Mominohio]

My husband works for UPS, a medium sized hub in a smaller city (approx population 50,000) and he's been there 20 years. 

He says their volume all summer and fall has been equal to the average peak season (roughly Thanksgiving through the first of the year). They usually only rent additional trucks during peak season, but have had to most of this year. 

Some of the drivers have been out till 10 pm lately, something unheard of this early in the season. 

I don't think anyone should expect product availability or shipping accuracy/timing much beyond November 1st. It will be a gamble at best.

[chlema]

Fedx is terrible where I live.  Packages take forever to be delivered.  I've been waiting since 10/6 for a package that they have had in their possession from that date till now and even tho they said it would be delivered Saturday/ 10/18 it was not.  Now when I go on their website it says "pending" whatever that means.  They have it so deliver it, please.  I hope it comes before Halloween because it's gifts for my 4 great grands.

[chrystaltree]

It's no different than any other year.  Shop as early as you can,  ship out as early as you can.  

[chrystaltree]

@Mominohio 

That's so true.  People shop online now for many reasons.  I think if we want our packages to arrive before Christmas, we must have them in the mail or with the delivery service by 11/15.  I don't send many packages out of state but I plan to use "bill to-ship to".  

[homedecor1]

@Mominohio 

Well I'm saying ty to him & all other drivers!!!

UPS came 9:30 on Monday night to deliver spouse medical stuff. I said "thank you long nite" UPS driver said "and it's not even the holiday rush" "wait til you see those delivery times".

Although, lots of complaints I appreciate they get our packages here...not like the other 3rd rate companies.  My meds have been stuck somewhere since 10/7 with stamps.com.  Never heard of this  service🤷‍♀️🤷‍♀️