Business & Investment

Postal service stands out with the latest peak delivery performance report

According to data released by consultants on Friday, the peak season delivery performance of the three major parcel carriers for the week ending December 11 was almost in line with the previous week’s level, while the United States Postal Service was year-over-year. Reported the best improvement ShipMatrix Inc.

From December 5th to 11th, the post office went to work at a regular rate of 95%, slightly below the previous 2021 week from 87.5% in the same period in 2020. UPS Inc. (NYSE: UPS) The reported on-time rate was 95.8%, a slight decrease from 96.1% in both the previous week and the same period last year. FedEx Corp. (NYSE: FDX) On-time delivery rates were 84.8 percent, up slightly from last week’s levels, but down more than 9 percentage points from 2020, according to ShipMatrix data.

ShipMatrix President Satish Jindel said Japan Post’s year-on-year improvement was due to a significant expansion of parcel processing capacity during the year. In addition, postal services are not being dragged by traffic circumvented by large shippers whose volumes were limited by FedEx and UPS, as in 2020.

Extensive media reported throughout the fall of supply chain bottlenecks along the West Coast and parts of the East Coast played a key role in persuading consumers to start holiday shopping earlier than usual, traditionally. Removed much of the pressure of the peak season from the parcel. The delivery ecosystem, Jindel, said. In addition, he said more holiday products are being delivered to stores to support year-over-year growth in physical store shopping. As a result, parcel carriers can ship large quantities of luggage to a central location at one time, rather than being forced to deliver one or two packages to each residence.

The ability to avoid multiple stops at each residence was an important factor in improving overall delivery performance, but especially for postal services, the law requires collection and delivery to all US addresses. there is.

Carrier delivery performance was distorted, especially by FedEx’s delivery policy. For example, if you extend your FedEx Ground unit’s delivery commitment from 3 days to 4 days and classify all next-day deliveries on time, regardless of whether the parcel was delivered by 8 am, FedEx’s performance will be 13. It jumps close to the percentage point. , 10:30 am and 3:00 pm, three delivery deadlines for the unit’s next day service.

UPS and the post office had already made their adjustments to ground services, Jindel said. At this point in the cycle, he added, if the parcel was delivered to the ground in four days instead of three days, consumers wouldn’t push it back.

Postal service stands out with the latest peak delivery performance report Postal service stands out with the latest peak delivery performance report

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