Shippers Plan For Fast Holiday Start

The numbers are in, and this year looks like it will be the biggest-ever for holiday shopping in the US. It’s great news for merchants, but the pressure is on for delivery services.

Leading shipping companies like UPS and FedEx are bracing themselves for massive volumes of deliveries this year as they adjust to the evolving habits of consumers aggressively seeking out online deals, even on the holidays.

Both companies are looking to avoid a repeat from last year. According to data from Shipmatrix, 2013 saw a 23 percent spike in shipments the week after Thanksgiving, poor winter weather and, ultimately, missed Christmas day deliveries. In the aftermath, FedEx blamed e-commerce companies with unrealistic sales forecasts on the shipper’s shortcomings.

Now, FedEx says it’s not going to make the same mistakes. FedEx Ground plans to be in operation seven days a week for the busiest time of the year and is hoping to expand its one-day delivery service to more than two-thirds of the nation. The company has also launched a new reporting system to facilitate delivery planning.

Meanwhile, UPS said it is expecting the online holiday shopping avalanche to begin the week before Thanksgiving as consumers find pre-Black Friday sales on their computers and phones. The company announced that, for the first time ever, it will be up and running on Black Friday; it also plans to add 49 new package sorting shifts and has boosted its largest air hub with nearly 1,000 new trailer spots.

The efforts are part of shipping companies’ plans to adapt to the booming online shopping marketplace. Data from Adobe System’s Digital Index online shopping forecast predicts a whopping 28 percent surge in Web sales on Black Friday, while Cyber Monday will likely bring in its own haul with $2.6 billion of online purchases.

Even Thanksgiving Day, once considered immune from the shopping frenzy, could see a 27 percent increase in sales compared with last year; data suggests purchases could top $1.35 billion on the holiday.

Delivery services, in turn, are also predicting massive spikes in package volume. Reports say UPS predicts an 11 percent increase in packages for December, while FedEx said it expects nearly 9 percent more parcels shipped between Black Friday and Christmas Eve.