UPS, FedEx expect big holiday season

Better watch out. UPS said it expects to deliver more than 630 million packages between “Black Friday” and New Year’s Eve, which would mark an increase of more than 10 percent over 2014. Competitor FedEx is predicting it will deliver a record-breaking 317 million packages globally  between Black Friday and Christmas Eve. If achieved, that is a 12.4 percent increase over last year.

“FedEx expects to see a record number of shipments move through our global network between Black Friday and Christmas Eve,” said Fred Smith, CEO. “The shift in consumer shopping patterns, fueled by the rise of e-commerce, continues to drive our volume.”

FedEx Ground will run seven-day sort operations during peak season, and FedEx Express will run expanded operations with additional hub sorts based on customer needs. The integrator is adding more than 55,000 positions throughout its network to cover the busy holiday season. This includes package handlers, drivers and other support positions.

FedEx Ground claims to be 27 percent faster than UPS Ground, and says that 83 percent of FedEx Ground shipments are delivered in three days or less. UPS said it plans to deliver 36 million packages on its peak delivery day, Tuesday, Dec. 22 – up from 35 million last year – and double the normal daily average of 18 million deliveries. UPS also cites e-commerce as a reason for the predicted boost.

“Consumer preference for online commerce is driving tremendous growth for UPS,” said Alan Gershenhorn, executive vice president and chief commercial officer. “We’ve implemented easy-to-use mobile and web-based technology that helps customers to track progress and customize their delivery, so they can plan when and where they receive packages.”

Similarly, a service called FedEx Delivery Manager allows package recipients in the United States to customize home deliveries to fit their schedules, including changing the time and location of a delivery, requesting a signature upon delivery and leaving instructions for the courier. Signing up for this service is free.

UPS added that its the busiest tracking day will be Dec. 15, and it plans to hire 90,000 to 95,000 extra drivers, handlers and helpers for the season. Deliveries are also expected to spike on “Cyber Monday,” Nov. 30.

The U.S. National Retail Federation expects sales in November and December to grow 3.7 percent, compared to last year, to US$630.5 billion. It also predicts e-commerce sales will continue to grow at a faster rate than brick-and-mortar sales, rising between 6 and 8 percent, to as much as $105 billion, year-over-year.