FedEx and UPS warn shoppers to brace for 'shipageddon' as they reach capacity meaning up to seven million packages PER DAY could face delays between Thanksgiving and Christmas
FedEx and UPS have warned shoppers to brace for 'shipageddon' as their shippers reach capacity ahead of the holiday season, meaning up to seven million packages per day could face delays between Thanksgiving and Christmas.
The eCommerce industry has been one of the few winners from the coronavirus pandemic as consumers turned to online shopping when states issued stay-at-home orders and stores shuttered.
Fears over the virus, shopping restrictions in reopened stores and a change in spending habits means - despite reopenings - many are still choosing to stick with the convenience of home delivery in the run up to the holiday season.
But delivery giants FedEx and UPS are buckling under the weight of demand and have told their largest shippers that most of their capacity has already been reached two months before Christmas Day.
Any extra holiday orders could be left waiting to be picked up to deliver to shoppers, and experts are warning that millions of packages will be delayed every single day of the season.
FedEx and UPS have warned shoppers to brace for 'shipageddon' as their shippers reach capacity ahead of the holiday season, meaning up to seven million packages per day could face delays between Thanksgiving and Christmas
Brie Carere, executive vice president and chief marketing and communications officer at FedEx, told NBC News the company has been facing peak levels since March when the virus started ravaging America and shoppers turned online.
She said the company is now bracing for an 'unprecedented peak season' and that - despite planning for months - it is likely there will be days when the 'entire industry is constrained'.
'Basically, we've been gearing up for the last six months for this holiday season,' Carere said.
'This will be an unprecedented peak season, and there will be days within the holiday season where the entire industry is constrained.'
FedEx has turned to asking retailers and merchants to bring forward sales to increase the chances of deliveries reaching customers on time for all-important days in the holiday calendar.
The shipping company is also hiring an extra 70,000 employees for the holiday season to help meet demand.
'We are working with all of our customers to really smooth their demand,' said Carere.
'We're asking retailers and merchants to pull forward their sales and I think we've already seen that in the industry.'
Carere also warned customers to start their holiday shopping early.
UPS said it is also working with merchants to try to prepare for the influx of orders and is looking to recruit another 100,000 seasonal workers. Pictured a UPS driver
'If you're shopping out there, we really encourage you to shop and ship early and really that means now,' she said.
'You know as a mom, I'm going to try to get all of my shopping done by November 1.'
A spokesperson for UPS also said the firm is facing similar challenges and is working with merchants to try to prepare for the influx of orders.
'We are working closely with our large and medium customers to steer volume to capacity and ensure the UPS network is reliable for all customers. We align the value we provide to our customers with our pricing and our cost to serve,' a UPS spokesperson told NBC.
Brie Carere, executive vice president and chief marketing and communications officer at FedEx said the company has been facing peak levels since March
'Strategies for working with our largest customers during this time include helping shift package volume away from the heaviest demand shipping days, to fully utilizing weekend capacity, and aligning promotional strategies with capacity.'
UPS is also looking to recruit another 100,000 seasonal workers to meet demand - on top of the 39,000 new employees hired already this year.
Dubbed 'shipageddon' or 'shipathon' in the industry, Satish Jindel, president of ShipMatrix software and consulting provider, told NBC News the strain on the industry means up to seven million packages a day between Thanksgiving and Christmas could face shipping delays.
Stay-at-home orders and state lockdowns caused shoppers to switch from in-store shopping to online back in March.
Despite economies reopening, many shoppers have stuck with internet shopping as the pandemic rumbles on and stores operate with restrictions in place.
According to research from Accenture, 75 percent of consumers said they plan to do at least some of their holiday shopping online this year, up by 10 percentage points from 65 percent last year.
With the big players buckling under demand, some retailers are turning to smaller US carriers such as LaserShip and DHL eCommerce Solutions or the US Postal Service.
However both options are already stretched as well, with LaserShip no longer able to take any more new customers until next year, reported the Wall Street Journal.