UPS & Post Office Holiday Performance Better Than Expected - FedEx? Not So Much
How did your holiday shipments go this year? If you’re in the majority of UPS customers, it probably went pretty well. Data from ShipMatrix shows a 96.9% on-time delivery by UPS and 96.5% on-time delivery by USPS. An article in the New York Times quotes data from Nielsen IQ that shows a 40% improvement of post-Thanksgiving fulfillment by FedEx and UPS over the 2019 holiday season. That sounds like great news, right?
Except…
Additional data from ShipMatrix shows that FedEx lagged behind the other carriers this year. In 2021, the carrier delivered 88.2% of its packages within their stated delivery times, compared with a 95.1% on-time delivery rate in 2020. A possible reason for the drop in on-time deliveries? In early December, FedEx predicted that they’d deliver 100 million more packages in 2021 than during pre-pandemic holiday seasons.
Things don’t appear to be looking up for FedEx in the new year, nor are they slowing down. In a recent service alert, the company claimed that “The explosive surge of the COVID-19 Omicron variant has caused a temporary shortage of available crew members and operational staff in the FedEx Express air network. Additionally, severe winter weather across the country has placed a strain on operations.”
How can you protect your bottom line in good times and bad?
Service guarantees were developed to help your business claim refunds when FedEx and UPS packages aren’t delivered as promised. During the holiday season of 2021, both carriers made big changes to their service guarantees. In October, UPS extended their delivery commitment times for UPS Next Day Air® destined to residential locations from 10:30 AM to 12:00 PM indefinitely. On November 1, FedEx suspended all service guarantees until January 16.
While we haven’t heard from UPS on any updates to their revised delivery times, we’re getting close to the reinstatement of service guarantees by FedEx.
When packages aren’t delivered as promised, FedEx and UPS clients are entitled to refunds. And yet, each year, billions of dollars in refunds go unclaimed. If you’re not regularly conducting parcel audits, you are leaving money on the table.
ShipRx created proprietary parcel audit software that checks over 40 different factors to automatically identify service failures and incorrect charges. Set up is fast and free– you can start seeing refunds and credits almost immediately. Since you only pay when you see refunds, the only impact on your bottom line is a positive one.
With the ongoing pandemic and winter weather, uncertainty is guaranteed. Don’t let that uncertainty affect your bottom line. Set up weekly audits and start saving money today.
The End of Free Shipping?
Last week, we discussed UPS and FedEx’s new surcharges in 82 urban zip codes. Now, some are saying these surcharges, ranging from $3.95 to $5.85, might be the final straw for free shipping.
UPS and FedEx surcharges coming to an urban center near you
Attention shippers! If you send parcels to addresses in Boston, Chicago, New York, Los Angeles, or San Francisco, you may be surprised by additional fees on your next bill. UPS and FedEx announced new delivery area surcharges (DAS) for
UPS to replace FedEx as USPS primary air cargo carrier
Although FedEx broke the news on April 1, the end of their 20-year partnership with the United States Postal Service was no April Fool’s Joke. According to the FedEx press release, after concluding extensive discussions, USPS and FedEx opted
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