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[1/2] A worker clears debris so delivery vehicles can exit a FedEx Ground distribution center in this aerial photograph taken over Carson, California, U.S., September 16, 2022. "They have to fight for every package right now, it's great for shippers," said LJM Consultants partner Kenneth Moyer, a former UPS pricing negotiator who now works with delivery customers. The world's biggest parcel delivery firm added it is using price negotiations to encourage attractive high-margin or high-volume customers, while discouraging high-cost deliveries. Third quarter ground delivery rates are forecast to fall 0.55% per package versus a the year earlier period, according to the TD Cowen/AFS Ground Pacrel Freight Index. But experts are skeptical, particularly as UPS offers to cover early termination fees for customers that switched to FedEx.
Persons: Bing Guan, That's, Kenneth Moyer, Deyman Doolittle, Wall, Moyer, Mark Taylor, Taylor, Satish Jindel, ShipMatrix, Micheal McDonagh, Yokeley, Lisa Baertlein, Ben Klayman, Aurora Ellis Organizations: FedEx, REUTERS, United Parcel Service, UPS, U.S . Postal Service, LJM, Cowen, Reuters Graphics Reuters, Teamster, Department, USPS, Amazon, AFS Logistics, International Brotherhood of Teamsters, Teamsters, Thomson Locations: Carson , California, U.S, Macy's, Los Angeles
Online sales started fizzling during last year's peak delivery season from Thanksgiving weekend through the end of the year. That could outpace peak season demand by 18 million packages per day, according to Satish Jindel, a consultant whose holiday peak volume forecasts are closely watched by delivery firms. During the 2020 and 2021 holiday peak delivery seasons, demand outstripped capacity by 7.2 million and 1.3 million packages per day, respectively, Jindel said. FedEx overestimated holiday demand last year, and many Ground delivery contractors got stuck with bills for hiring workers and renting trucks they did not need. read moreUPS is sticking with its plan to hire more than 100,000 holiday workers, the same as last year, a spokesman said.
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