UPS expects to deliver more than 630 million packages between Black Friday and New Year’s Eve, an increase of more than 10 percent over holiday deliveries last year, while FedEx said it expects to handle 317 million shipments between Black Friday and Christmas Eve, an increase of 12.4 percent over the previous year.
UPS said it plans to deliver about 36 million packages on Tuesday, Dec. 22, up from 35 million last year, and double the normal daily average of 18 million deliveries. Consumers’ preference for ecommerce, coupled with the industry’s most often selected delivery solutions have driven UPS’s peak volume to all-time highs, said the company.
“Consumer preference for online commerce is driving tremendous growth opportunities for UPS,” said Alan Gershenhorn, Executive Vice President and Chief Commercial Officer.
FedEx very much sees things the same way.
“Each year we face a challenge that’s greater and that’s driven by ecommerce,” Patrick Fitzgerald, FedEx senior vice president for integrated marketing and communications told Reuters. “We’ve learned that planning and preparation is key.”
Last year both companies touted investments in their networks and close collaboration with major retailers to manage package flows during the holidays. This year FedEx has invested $1.6 billion in capacity and automation projects at FedEx Ground to help with peak season.
But FedEx’s Fitzgerald said that if retailers come in way above forecast with a sudden surge in packages, the company may “need to cap volumes” in order to protect its network.
Along with new processing facilities, automation and routing technology to increase capacity, UPS has implemented new mobile and web-based technology that helps consumers to track progress and customize their delivery so they can plan when and where they receive packages, said Gershenhorn.
When the peak shipping season is in full swing, UPS expects 20 million consumers to have registered for the UPS My Choice service.　UPS My Choice allows members to receive text or email alerts about their deliveries. The service can reduce not-at-home delivery attempts since preferences can be set to re-direct the package to a nearby UPS Access Point location, which include local retailers.
The UPS Access Point network is expanding to more than 100 cities throughout the United States. By December, UPS expects to have 8,000 U.S. locations at The UPS Store or other neighborhood businesses, including local dry cleaners, drug stores and coffee shops.
UPS Access Point locations offer evening and weekend hours to accommodate package pickup according to a consumer’s busy schedule. They provide a secure location for consumers to retrieve their delivery if they are unable to receive their package at home, or if they live in a multi-tenant building that does not provide package collection as part of concierge services. Consumers can also drop off their returns at UPS Access Point locations.
UPS will add up to 95,000 temporary workers during the holiday season.
