Saturday, November 7, 2015

USPS calling for uptick in holiday mail and package volumes

By Jeff Berman, Group News Editor
November 06, 2015
FedEx and UPS are not the only carriers with major holiday delivery plans. The United States Postal Service (USPS) can certainly be added to that list, too.
The USPS said yesterday that over the course of the holiday season it expects to deliver roughly 15.5 billion cards, letters, flats, and packages, adding that it expects to deliver around 600 million packages alone between Thanksgiving and New Year’s Eve, which would represent a 10.5 percent annual increase.
And in order to meet the expected increased holiday demand, the USPS said it will bring on 30,000 additional holiday season staffers to help meet customer needs, while, like last year, deliver packages seven days a week in select major cities and high-volume areas for the four Sundays before Christmas, beginning November 29. What’s more, USPS said it expects to deliver around 5 million packages on average each Sunday during the month of December.
As for its busiest mailing and delivery days during the holiday season, the USPS said that Monday, December 14 is expected to be the busiest mailing and shipping day for holiday packages, letters, and cards, as well as its busiest day online, with it estimating 7 million customers are expected to visit http://www.usps.com .
And Monday, December 21 is being pegged by the USPS as its busiest day for holiday packages, cards, and letters, with USPS expecting more than 30 million packages to be delivered on that day.
“Customers can count on the Postal Service and our more than 600,000 dedicated employees to deliver their holiday gifts, cards and letters,” said Megan J. Brennan, Postmaster General and CEO, in a statement. “We have been investing in our infrastructure including package sortation equipment, new delivery vehicles and scanning technology to expand our capacity, improve operating efficiency and provide real-time visibility.”
Last week, Atlanta-based UPS said on its third quarter earnings call that its planned peak day is expected to be Tuesday, December 22 and expects to deliver about 36 million packages, which UPS Executive Vice President and Alan Gershenhorn said is more than twice a typical day.
Gershenhorn explained that the growth in online shopping and returns continues to redefine Peak Season at UPS, explaining that during the period between Peak Season and New Year’s UPS expects to complete about ten percent more deliveries compared to the same period last year.
“On our planned peak day of December 22, we are scheduled to deliver about 36 million packages worldwide, which is more than twice a typical day,” he said. “Looking at the market, the National Retail Federation expects holiday retail sales (which it defines as the months of November and December) by 3.7 percent, and online sales are expected to rise between 6 and 8 percent. We have broadened our strategy for Peak this year and these actions are producing year-round benefits.”
And Memphis-based FedEx recently said it is predicting it will move 317 million shipments between Black Friday and Christmas, which, if that number is reached, will stand as a new company record and be up 12.4 percent annually compared to 2014 holiday season volumes.
As for the drivers for the expected shipment gains, FedEx cited how this year’s holiday season has an additional day compared to last year, coupled with three volume spikes, including Cyber Monday and the first two Mondays in the month of December––days which FedEx says it expects to see more than double its average daily volume.
“FedEx expects to see a record number of shipments move through our global network between Black Friday and Christmas Eve,” said Frederick W. Smith, CEO of FedEx Corp., in a statement. “The shift in consumer shopping patterns, fueled by the rise of e-commerce, continues to drive our volume. Our strategic investments, unmatched flexible global network, and more than 325,000 dedicated team members around the world are ready to help the holidays arrive again this year.”

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