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{"id":21421,"date":"2020-10-20T19:02:07","date_gmt":"2020-10-20T19:02:07","guid":{"rendered":"https:\/\/www.announcement.news\/fedex-ups-face-shipageddon-with-potential-shortfall-of-7-million-packages-a-day-over-holiday-season\/"},"modified":"2020-10-20T19:02:07","modified_gmt":"2020-10-20T19:02:07","slug":"fedex-ups-face-shipageddon-with-potential-shortfall-of-7-million-packages-a-day-over-holiday-season","status":"publish","type":"post","link":"https:\/\/www.announcement.news\/fedex-ups-face-shipageddon-with-potential-shortfall-of-7-million-packages-a-day-over-holiday-season\/","title":{"rendered":"FedEx, UPS face ‘shipageddon’ with potential shortfall of 7 million packages a day over holiday season"},"content":{"rendered":"

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With the holiday season rapidly approaching, delivery services are bracing for what some are calling \u201cshipageddon,”<\/a> with a potential shortfall of as many as 7 million packages a day.<\/p>\n

UPS and FedEx have told some of their shippers that they have already reached most of their capacity, according to The Wall Street Journal.<\/p>\n

That shortage could mean up to 7 million packages a day between Thanksgiving and Christmas could face delays, Satish Jindel, president of ShipMatrix software and consulting provider, told NBC News.<\/p>\n

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\u201cThis will be an unprecedented peak season, and there will be days within the holiday season where the entire industry is constrained,\u201d Brie Carere, executive vice president and chief marketing and communications officer at FedEx, told NBC News\u2019 Jo Ling Kent.<\/p>\n

\u201cWe are working with all of our customers to really smooth their demand. We’re asking retailers and merchants to pull forward their sales and I think we’ve already seen that in the industry.\u201d<\/p>\n

The company coins it \u201cshipathon,\u201d having experienced peak levels since March.<\/p>\n

\u201cBasically, we’ve been gearing up for the last six months for this holiday season,\u201d Carere told NBC News.<\/p>\n

UPS is also addressing the concern.<\/p>\n

\u201cWe are working closely with our large and medium customers to steer volume to capacity and ensure the UPS network is reliable for all customers. We align the value we provide to our customers with our pricing and our cost to serve,\u201d according to a UPS spokesperson.<\/p>\n

This comes as more consumers are looking to shop online and earlier amid the pandemic.<\/a><\/p>\n

According to consulting company Accenture, 75 percent of consumers say they\u2019ll do at least some of their holiday shopping online this year \u2014 up 65 percent from last year \u2014 and 43 percent plan to do so exclusively.<\/p>\n

Amazon alone saw third-party sales increase by 60 percent during its two-day Prime Day event last week, with sellers earning over $3.5 billion.<\/a><\/p>\n

According to retail conference company CommerceNext, 49 percent of merchants worry that fulfillment centers may struggle to keep up with e-commerce levels like these and 60 percent think shippers may cap deliveries during peak demand.<\/p>\n

Both UPS and FedEx are adjusting to new consumer trends to keep up with the big-name retailers who have already done so.<\/p>\n

\u201cStrategies for working with our largest customers during this time include helping shift package volume away from the heaviest demand shipping days, to fully utilizing weekend capacity, and aligning promotional strategies with capacity,\u201d according to a UPS spokesperson.<\/p>\n

UPS hired 39,000 new employees earlier this year and plans to make more than 100,000 seasonal hires. FedEx is adding 70,000 new employees for the holiday season and is also encouraging weekend delivery.<\/p>\n

Carere encourages checking gifts off your list as soon as possible.<\/p>\n

\u201cIf you’re shopping out there, we really encourage you to shop and ship early and really that means now. You know as a mom, I’m going to try to get all of my shopping done by Nov. 1,\u201d she said.<\/p>\n<\/div>\n

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[ad_1] With the holiday season rapidly approaching, delivery services are bracing for what some are calling \u201cshipageddon,” with a potential shortfall of as many as 7 million packages a day. UPS and FedEx have told some of their shippers that they have already reached most of their capacity, according to The Wall Street Journal. That […]<\/p>\n","protected":false},"author":15739,"featured_media":21423,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[3],"tags":[],"jetpack_featured_media_url":"https:\/\/www.announcement.news\/wp-content\/uploads\/2020\/10\/201019-nyc-fedex-ups-driver-2015-ac-800p_2cacf2e96e0a8c9d29addd29960fc80d.nbcnews-fp-1200-630.jpg","_links":{"self":[{"href":"https:\/\/www.announcement.news\/wp-json\/wp\/v2\/posts\/21421"}],"collection":[{"href":"https:\/\/www.announcement.news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.announcement.news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.announcement.news\/wp-json\/wp\/v2\/users\/15739"}],"replies":[{"embeddable":true,"href":"https:\/\/www.announcement.news\/wp-json\/wp\/v2\/comments?post=21421"}],"version-history":[{"count":0,"href":"https:\/\/www.announcement.news\/wp-json\/wp\/v2\/posts\/21421\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.announcement.news\/wp-json\/wp\/v2\/media\/21423"}],"wp:attachment":[{"href":"https:\/\/www.announcement.news\/wp-json\/wp\/v2\/media?parent=21421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.announcement.news\/wp-json\/wp\/v2\/categories?post=21421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.announcement.news\/wp-json\/wp\/v2\/tags?post=21421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}