While the holidays have always been considered “peak season” for parcel shipping, this year’s unparalleled e-commerce growth has redefined and intensified that reality. Businesses relying on parcel shipping must prepare for a potential capacity crunch and subsequent delivery setbacks this peak season and beyond. That possibility rose this week when, according to a recent Total Retail article, FedEx and UPS informed shippers to expect delays in having their orders picked up as most of their capacity for the holidays is already filled.
ShipMatrix projects as many as 7 million packages per day could be outside of maximum capacity for these two leading carriers’ parcel delivery services. Even regional and last mile carriers OnTrac, LaserShip, and Speedee Delivery have reached capacity heading into peak season.
Amazon’s Prime Day officially kicked off this year’s holiday shopping season in mid-October with other retailers launching similar promotions in hopes of spreading out demand to prevent further strains on supply chains by encouraging consumers to shop earlier and avoid crowds and delivery delays. Many carriers have encouraged retailers and brands to run these types of early sales events to increase the chances of deliveries reaching customers on time for the pivotal peak season stretch.
The escalating delivery capacity shortage and increasing e-commerce volumes continue to raise the stakes for many businesses. Companies that can invest in a multi-carrier shipping system that creates flexibility and diversity in fulfillment stand a better chance of keeping costs in check. Growing its carrier network can help any business, regardless of its preparedness, by introducing more options and capacity into the parcel delivery mix and boosting agility to improve customer service and fulfillment.
To learn more about optimizing high velocity parcel shipping for peak season and beyond, contact us today.