A flood of mail, a historic boom in online holiday shopping and one of the biggest snowstorms in the northeast, in years, they combine to overwhelm the U.S. shipping system.
It is estimated that 6 million packages a day are accumulating in retail stores or shipping centers and waiting to be picked up by FedEx, UPS, Amazon, the U.S. Postal Service and other shippers. Another 3.5 million packages are collected daily but do not reach their destinations on time, according to the latest shipping data. It could soon get even worse: USPS punctual delivery rates have dropped to just over 86% in the third week of December, up from 93% three weeks ago.
That’s according to estimates by ShipMatrix, a software company that helps retailers and others track shipments and collects data on millions of packages shipped from more than 100,000 U.S. locations.
“Our entire industry is underwater due to demand [for deliveries]”Said Satish Jindel, president of ShipMatrix. Friday will probably be the last day for consumers to send things by regular mail for Christmas to come,” he added.
In fact, it is likely that most retailers and shippers have passed the deadline to reach the destination packages by standard shipping before the Christmas holidays. The last official USPS day for pre-Christmas delivery is Friday, December 18th. But, even more expensive, two-day or overnight shipments may also be running out of capacity. According to Business Insider, small business owners say FedEx is rationing the number of deliveries it will complete for retailers due to huge demand. Some have had a limit of 75 packages a day, he reported.
A FedEx spokesman told CBS MoneyWatch after his questions about retail shipping limits that the company “worked closely with customers” before the holiday season to “ensure the best possible service.” He added: “Throughout Peak, we continue to regularly collaborate with customers on ways to leverage the flexibility of our network and seven-day operation during this busy time.” The spokesman declined to comment on whether FedEx had imposed package limits.
The blockade described by veterans of the shipping industry (worse this holiday season than in recent years, they said) is shortening the holiday shopping season, frustrating both consumers and retailers, and can also hurt the economy. such as the recovery of the Coronavirus pandemic it seems to be scattering.
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 rely on,” a UPS spokesman said in a statement electronic.
“The data provided by external consultants can vary widely depending on the specific markets, customers, and navigation lanes they choose for their analysis,” the FedEx spokesman said. 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 spokesman 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 filing with the U.S. Securities and Exchange Commission that “additional restrictions” on shipping capacity during the holiday season could hurt sales. On December 15, Etsy also updated the shipping deadlines for its retailers and asked them to add the dates to their product description pages.
Arlene Marie Mathews, a seller from Milford, Pennsylvania, who sells bath lotions and aromatherapy on Etsy and is usually shipped through the postal service, said customers have experienced delays since late November and that some orders are they delay up to two weeks. On December 16, he updated his product page on Etsy to warn that orders could 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 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. December 16 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,” a spokesman said. “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. “
“They have no idea where he is”
Delays in sending parties cause headaches for consumers. Christine and Bruce Merevick, of Chicago, cannot see their family in Alabama for Christmas because they are undergoing chemotherapy and are considered 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 Merevick 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 resulted in the transmission of more orders to the postal service, which has been added to the email delays that began this summer before the November elections. 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.”