A flood of mail and online holiday shopping overwhelms the U.S. shipping system. It is estimated that 6 million containers are stopped daily, inactive in retail stores or shipping centers and awaiting collection by FedEx, UPS, Amazon, US Postal Service and other shippers.
According to estimates by ShipMatrix, a software company that helps retailers and other companies track shipments and collects data on millions of packages shipped from more than 100,000 locations in the United States. Another 2.5 million packages are collected daily but do not arrive at their destinations on time, the data shows.
“Our entire industry is underwater because of demand,” said Satish Jindel, president of ShipMatrix. Friday will probably be the last day consumers can mail things by regular mail so they arrive before Christmas, he said.
The blockade is slowing the holiday shopping season, frustrating shoppers and retailers, as well as hurting the economy as the economy recovers. Coronavirus pandemic it seems to be scattering. Some experts warn that packages that have not yet been mailed will not reach their destination by standard shipping before the Christmas holidays.
Another industry member with access to internal data from a major shipping company told CBS MoneyWatch that the number of packages not picked up every day is much higher during the holiday season than in recent years. A big winter storm going down to the northeast could mean more delays.
Both FedEx and UPS declined to disclose how many packets are delayed in traffic. A UPS spokesman said 96% of its shipments arrived on time this holiday season. But that figure only includes the packages UPS picked up, not the ones it lost.
“This is one of the most successful holiday transportation times as we focus on maintaining a reliable delivery network that all of our customers can trust,” a UPS spokesman told CBS MoneyWatch in a press release sent by email.
“The data provided by third-party consultants can vary widely depending on the specific markets, customers, and navigation lanes they choose for their analysis,” a FedEx spokesman said in an email. He also said the role of the company in helping to distribute the Pfizer-BioNTech vaccine does not affect regular shipments, noting that the company uses a separate fleet of trucks and aircraft for this effort.
“As stated above, we continue to work closely with our customers to manage their volume and help us deliver the best possible service,” the FedEx spokesperson added.
“Waiting for refund request”
Some retailers claim they face shipping delays. Earlier this month, Victoria’s Secret owner L Brands warned investors in a request to the U.S. Securities and Exchange Commission that “additional restrictions” on shipping capacity during the holiday season could hurt sales. On Tuesday, Etsy also updated the cut-off dates for its retailers and asked them to add the dates to the product description pages.
Arlene Marie Mathews, a salesman based in Milford, Pennsylvania, who sells bath lotions and aromatherapy on Etsy and is usually shipped through the U.S. Postal Service, said customers have experienced delays since late November and that some orders are delayed up to two weeks. On Wednesday, it updated its product page on Etsy to warn that orders can be up to ten business days late.
“I’m currently inundated with messages from customers asking where their packages are. Some are understanding, some aren’t,” Mathews told CBS MoneyWatch. “I’m waiting for refund request messages to start flooding my inbox at any time.”
Etsy said it will allow sellers to dial in to remove any negative reviews from customers who only complain about shipping issues. An e-commerce company spokesman said it has “dynamically adjusted estimated delivery dates” on its website to provide buyers with the latest information.
“We know the holidays are an incredibly important time for the 3.7 million creative entrepreneurs who sell on Etsy,” the spokesman said in a statement. “To address operator delays in the U.S., we focus on supporting vendors by making the latest information we have available.”
Olive & Cocoa, an online gift basket retailer based in Salt Lake City, Utah, warns customers about possible delays and that shipping lanes have run out. Wednesday was the last day the website said it could send orders by standard shipping to be delivered before Christmas. Subsequent orders will not arrive until December 29th. The two-day submission will not be available on the website until January, although places remain for faster and more expensive shipments.
“Olive & Cocoa recognizes that the entire shipping system is overloaded,” an Olive & Cocoa spokesman said in an emailed statement to CBS MoneyWatch. “We are working closely with our shipping partners to provide our customers with the best information we can about delivery availability and deadlines, and to ensure that holiday gifts requested from Olive & Cocoa are delivered in a manner consistent with our high standards of customer service. “
Mount frustration
Delays in sending parties cause headaches for consumers. Christine and Bruce Merevick, of Chicago, are unable to see their family in Alabama for Christmas because they are undergoing chemotherapy and are considered to be at high risk for COVID-19. Increasing their frustration, the Merevicks ’vacation package, which they sent priority and insured in early December, has yet to arrive. They filed a complaint, but were asked to re-verify it in two weeks.
“It’s very frustrating,” Christine told Tara Molina of CBS Chicago. “They have no idea where he is.”
CBS News correspondent Janet Shamlian reported this week that FedEx and UPS have told some retailers that they will not pick up additional packages beyond their previous commitments before retailers have seen an increase in orders. This has led to more orders being sent to the USPS, which added to the email delays that began this summer. Earlier this week, USPS in a public statement encouraged customers to send their gifts and holiday cards “as soon as possible.”
Even before the holidays, shipping delays had been an issue during the pandemic, which encouraged some consumers to increase their online orders and avoid face-to-face purchases. FedEx and UPS began increasing hiring as early as November to be prepared for the expected increase in deliveries, adding 170,000 workers combined during the season. But these problems are now introduced in the holidays of many people.
“It wasn’t possible for the shippers to be ready,” Jindel of ShipMatrix said. “It would have taken two or three years to be ready for the jump in demand this year.”