Carriers Struggle with On-Time Delivery During Peak Season & Postmaster General to Remain in Position Indefinitely
FedEx and UPS’ Peak Season On-Time Delivery Rates Dropped From Last Year’s
Peak shipping season, the time between Black Friday and New Year’s Day, presents a unique challenge to carriers like FedEx and UPS who handle a combined 2.75 billion parcels during this period. While both companies experienced on-time delivery rates over 94%, they also experienced worse on-time delivery rates than last year’s peak season.
According to ShipMatrix, FedEx had an on-time delivery rate of 94.6%, which was two percentage points lower than UPS’ 96.6%. This is the second year in a row that FedEx earned a lower on-time delivery rate than UPS.
FedEx’s on-time delivery rate is also down two percentage points from 2018. UPS’ rate only decreased by 1.7 percentage points, in comparison.
While both companies expected high shipping volumes, neither was fully prepared for how many packages moved through the system. In a statement to Commercial Appeal, FedEx said that the company “experienced some of the highest volume days in the history of [the] company.”
Amazon’s peak season on-time delivery rates were higher than both FedEx and UPS, at 98.9%. Experts say that this comparison is not apples to apples, though, because of the nature of Amazon’s shipping operations.
Postmaster General Delays Retirement Indefinitely
Megan Brennan, the head of the USPS, is delaying her retirement while the organization’s board of governors continues to search for her successor. She was previously set to retire on Jan. 31 after a five-year stint as the postmaster general.
The challenge in finding the next postmaster general stems from competing interests from a variety of stakeholders, along with a mandate from the Trump administration to create structural changes that will make USPS a more financially viable operation.
Some predict that this will mean privatizing and selling parts of the service. This is opposed by the American Postal Workers Union who wants a new postmaster general who will not issue any cuts to the agency.
Only time will tell who the board of governors chooses to head the service and what changes if any the new postmaster general will make.
The Chairman of the Board of Governors, Robert Duncan, commented on the matter saying, “we are grateful to the Postmaster General for her continued commitment to the Postal Service, and share her confidence in the Postal Service’s strong leadership team members who will ensure that we continue to deliver for the American people.”