Carriers Prepare for Increasing Surge to Supply Chain
Online shopping was already on the rise before the COVID-19 pandemic hit, and it accelerated dramatically once many consumers began staying home. E-commerce is expected to continue to grow throughout the holiday season, placing added strain on the supply chain and increasing demand for final-mile deliveries.
“We’re anticipating an unprecedented peak season. It will be an industrywide ‘shipathon’ that we’ve never seen before,” said Ryan Kelly, vice president of global e-commerce marketing at FedEx Corp.
Kelly said FedEx, which is based in Memphis and ranks No. 2 on the Transport Topics Top 100 list of the largest for-hire carriers in North America, has been seeing peak-like level volumes since March.
“The growth that we expected to see over a period of several years happened over a period of only several months,” he said.
UPS Inc. is currently delivering volumes similar to the peak holiday shipping season with about 70% of its deliveries to residences, compared with about 50% during the rest of the year, said Dawn Wotapka, communications manager for UPS, which is based in Atlanta and ranks No. 1 on the for-hire TT100.
“UPS has met this demand by utilizing its expanded weekend operations and, in Q2 2020, hired an additional 39,000 full- and part-time small package operations employees,” she said.
OnTrac, a Chandler, Ariz.-based regional parcel delivery company — ranking No. 57 on the for-hire TT100 — is already experiencing peak volumes, said Mark Magill, vice president of business development for the company.
© 2019 Worldfreightrates News