Surprise! Surprise!

ShipMatrix, which works with parcel shippers and provides data on UPS, FedEx, US Postal Service, and FedEx delivery times, all show close to 100% on time performance. Even for those who expected that these services would be prepared for holiday season, it’s a pleasant surprise.

Satish Jindel (President of ShipMatrix) said, “If you operate on the peak, that is tremendous.” “I was expecting.” [the performance rate]To be in the mid-90s.”

Jindel attributes three factors to the unexpectedly good results.

“One is all you need” [that]”Carriers added capacity,” he stated. “Secondly, there are more people buying in stores this year than last year. It is better to have shipments go to stores than home. Third, people were exposed to the supply chain problems, which included ships being stranded outside of ports. Many people didn’t want delays so they ordered early or shop earlier.

UPS conducted a survey earlier this year and found that 91% of respondents said they expected to finish all their holiday shopping within a week, compared with 81% last year. About 60% of respondents said that they planned to complete their holiday shopping within two weeks, compared to 52% in 2020. 25% stated that they would finish their shopping before Black Friday.

Jindel indicated that all three major delivery services have made substantial investments in increasing their capacity during the past 12 months.

A year ago, all three were hit with a huge increase in shipment volumes — FedEx (FDX)For example,, which stated that its 2020 deliveries would be 24% higher than the 2019 levels, This resulted in shipment volumes exceeding the service’s capabilities and strained their systems to breaking point.
UPS (UPS)The Postal Service claimed that it has built 2 million square feet more automated facilities. It also added equipment to process 130,000 extra parcels per hour, compared to last year. The Postal Service claimed that it has increased its space by 13 million square feet in more than 100 locations. This includes more than 50 annexes. It also installed 112 new sorting machines.
All three delivery companies have hired tens to thousands of seasonal workers in addition to more permanent full-time staff despite the labor shortage.

This year Jindel said overall shipment volumes will be only narrowly higher than in 2021 — perhaps a low single digit increase industry-wide. However, handling this volume will be easier because of the greater capacity.

However, this doesn’t mean holiday shoppers won’t be able get all they need delivered before December 25.

Some products are out of stock, so they won’t arrive in time to be delivered to customers’ homes or local stores.

Jindel claimed that the data proves that shipping companies are delivering on their promises. It’s best to not wait to order gifts or send them. For Christmas delivery, the Postal Service recommends that non-express packages be sent by Wednesday to avoid delays and that first-class packages of less than a pound be sent by Friday.

These three carriers are also reporting that their delivery systems are operating smoothly, even though they are all reporting an increase in package volumes.

The Postal Service stated that it expected to deliver between 85 million and 905 million packages this Christmas. This gives USPS the chance to surpass the record 925,000,000 parcels delivered in 2020’s holiday season. It will also likely top the 810,000,000 packages delivered by the service in the 2019 pre-pandemic holiday seasons.

UPS also claimed it was expecting a volume increase over last year’s record volumes, but has yet to give specifics. UPS’s domestic package volume increased by 2% in the first nine month of the year compared to 2020. This was a 15% increase over the first nine months.

FedEx stated that it anticipates handling 100,000 more packages in the holiday season than it did last year.