A flood of mail, a historic boom of online holiday shopping and one of the biggest snowstorms in the Northeast, in recent years it has combined to overwhelm the US shipping system.
It is estimated that 6 million packages a day accumulate in retail stores or shipping centers and are awaiting collection by FedEx, UPS, Amazon, the US Postal Service and other shippers. Another 3.5 million packages are picked up daily, but do not reach their destinations on time, according to the latest delivery data. It could soon get worse: on-time delivery rates for the USPS fell to just over 86% in the third week of December, down from 93% three weeks ago.
That’s according to ShipMatrix, a software company that helps retailers and others track shipments and collects data on millions of packages sent from more than 100,000 locations in the United States.
“Our entire industry is underwater because of demand [for deliveries]”said Satish Jindel, president of ShipMatrix. Friday will probably be the last day consumers can ship things by regular mail so they arrive by Christmas,” he added.
Indeed, the deadline for packages arriving at their destination using standard transport before the Christmas holidays has probably passed for most retailers and shippers. The last official USPS day for delivery before Christmas is Friday, December 18th. But, even more expensive in two days or overnight, transportation could run out of capacity. Small business owners, according to Business Insider, say FedEx is rationing the number of deliveries it will complete for retailers due to rising demand. Some were detained at a limit of 75 packages per day, he reported.
A FedEx spokesman told CBS MoneyWatch after questions about retailers’ shipping limits that the company “worked closely with customers” before the holiday season to “provide the best possible service.” . She added: “Along the peak, we continue to work regularly with customers on ways to capitalize on the flexibility of the network and seven-day operation during this busy period.” The spokesman declined to comment on whether FedEx imposed package limits.
The blockade described by veterans of the shipping industry – worse this holiday season than in previous years, they said – limits the holiday shopping season, frustrating both consumers and retailers, and potentially hurting the economy as a result. recovery from coronavirus pandemic seems to be buzzing.
Both FedEx and UPS declined to disclose how many packages are delayed in transit. A UPS spokesman said 96% of its deliveries arrived on time this holiday season. But that figure only includes the packages UPS picked up – not the ones it missed.
“This is one of the most successful holiday delivery periods to date, as we focus on maintaining a reliable delivery network on which all our customers can depend,” a UPS spokesman said in a statement. e-mail.
“The data provided by third-party consultants can vary greatly depending on the specific markets, customers and transportation routes they choose for analysis,” the FedEx spokesman said. She added that the company’s role in helping distribute the Pfizer-BioNTech vaccine does not affect regular shipments, noting that the company uses a separate fleet of trucks and planes for the effort.
“As mentioned earlier, we continue to work closely with our customers to manage their volume and ensure we provide the best possible service,” the FedEx spokesman added.
“Reimbursement request pending”
A number of retailers say they are facing shipping delays. Earlier this month, Victoria’s Secret owner L Brands warned investors in a US Securities and Exchange Commission case that “additional constraints” on carrying capacity during the holiday season could affect sales. On December 15, Etsy updated its shipping deadlines for retailers and asked them to add the data to their product description pages.
Arlene Marie Mathews, a supplier from Milford, Pennsylvania who sells bath lotions and aromatherapy on Etsy and generally delivers by mail, said customers are experiencing delays since late November and some orders are delayed. up to two weeks. On December 16, it updated its product page on Etsy to warn that orders may arrive up to 10 business days late.
“I’m currently inundated with messages from customers asking where their packages are. Some understand, some don’t,” Mathews told CBS MoneyWatch. “I’m waiting for the refund request messages to start flooding my inbox at any time.”
Etsy said it will allow sellers to signal to remove any negative reviews from customers who only complain about shipping issues. An e-commerce company spokesman said it had “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 delays in US operators, we focus on supporting vendors by making the latest information available to us.”
Olive & Cocoa, an online gift basket seller based in Salt Lake City, Utah, warns customers of possible delays and that shipping slots are running low. December 16 was the last day that the site said it could ship orders by standard delivery for delivery by Christmas. Subsequent orders will not arrive until December 29. Two-day shipping is not available on site until January, although slots remain for faster – and more expensive – deliveries.
“Olive & Cocoa recognizes that the entire shipping system is overburdened,” a spokesman said. “We work closely with our transportation partners to provide our customers with the best information on availability and delivery times and to ensure that holiday gifts ordered from Olive & Cocoa are delivered in a manner that meets our standards. high customer service. “
“They have no idea where he is”
Shipping delays cause headaches to 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. Improving their frustration, the Merevicks holiday package, which they sent as a priority and insured in early December, has not yet arrived. They applied, but were told to return in two weeks.
“It’s very frustrating,” Christine Merevick told Tara Molina on CBS Chicago. “They have no idea where he is.”
CBS News correspondent Janet Shamlian reported this week that FedEx and UPS have told retailers they will not pick up additional packages beyond their previous commitments until retailers see an increase in orders. This has led to more orders being sent to the postal service, adding to the mail delays that began this summer before the November elections. Earlier this week, the USPS, in a public statement, encouraged customers to send their holiday gifts and cards “as soon as possible.”
Just before the holidays, shipping delays were a problem during the pandemic, which led some consumers to increase their online orders and avoid in-person shopping. FedEx and UPS have been stepping up their jobs since November to be ready for the expected increase in deliveries, adding 170,000 combined workers for the season. But these issues are now being celebrated by many people.
“It was not possible for the shippers to be ready,” said Jindel of ShipMatrix. “It should have taken two or three years to get ready for this year’s demand jump.”