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UPS, FedEx call on retailers to set more realistic delivery deadlines
UPS and FedEx Express are urging US retailers to hold "last-minute" sales earlier and not promise so many overnight deliveries just before Christmas, reported Air Cargo World.
The request is being made to avoid last year's logistics nightmare, which saw two million presents delivered well after Christmas missing their guaranteed December 24 delivery date.
In 2013, 73 million parcels were delivered Christmas Eve, but severe weather and an explosion in e-commerce resulted in many angry customers, reported logistics software firm ShipMatrix.
UPS reportedly had to pay US$50 million in refunds for missing deadlines, saying that 70 national retailers were offering guaranteed next-day delivery for purchases made up until 11pm on December 23.
To prevent a repeat, the Wall Street Journal said UPS and FedEx have been contacting retailers this autumn and urging them to stop offering free overnight shipping as late as December 23.
They also ask retailers to stagger holiday sales on a regional basis so there is less pressure on cargo carriers simultaneously across the country. Otherwise, the carriers said, they can no longer guarantee on-time delivery as late as Christmas Eve.
So far, the response from national retailers has been lukewarm.
The Wall Street Journal reports that Seattle-based Nordstrom has agreed to roll back the deadline for its next-day guarantee for shipments made on December 23 from 3pm to noon.
In exchange UPS would be required to add cargo flights on December 22 and 23.
Macy's has expanded areas in each of its 800-plus retail stores for in-store pickup of online orders. However, the company has refused to change its noontime express delivery deadline on December 23.
JC Penney also refused to change its policy of guaranteeing standard Christmas Eve delivery as late as December 20, two-day shipping by 3pm on December 22 and overnight delivery up until 3pm December 23.
FedEx said it is also trying to help by increasing its seasonal staffing levels by 25 per cent, spending $1 billion to expanding capacity and clearly informing retailers about what delivery windows it can and can't handle.
UPS is spending $500 million to add 6,000 loading docks for its delivery vans and boosting its seasonal hiring by 73 per cent.
The request is being made to avoid last year's logistics nightmare, which saw two million presents delivered well after Christmas missing their guaranteed December 24 delivery date.
In 2013, 73 million parcels were delivered Christmas Eve, but severe weather and an explosion in e-commerce resulted in many angry customers, reported logistics software firm ShipMatrix.
UPS reportedly had to pay US$50 million in refunds for missing deadlines, saying that 70 national retailers were offering guaranteed next-day delivery for purchases made up until 11pm on December 23.
To prevent a repeat, the Wall Street Journal said UPS and FedEx have been contacting retailers this autumn and urging them to stop offering free overnight shipping as late as December 23.
They also ask retailers to stagger holiday sales on a regional basis so there is less pressure on cargo carriers simultaneously across the country. Otherwise, the carriers said, they can no longer guarantee on-time delivery as late as Christmas Eve.
So far, the response from national retailers has been lukewarm.
The Wall Street Journal reports that Seattle-based Nordstrom has agreed to roll back the deadline for its next-day guarantee for shipments made on December 23 from 3pm to noon.
In exchange UPS would be required to add cargo flights on December 22 and 23.
Macy's has expanded areas in each of its 800-plus retail stores for in-store pickup of online orders. However, the company has refused to change its noontime express delivery deadline on December 23.
JC Penney also refused to change its policy of guaranteeing standard Christmas Eve delivery as late as December 20, two-day shipping by 3pm on December 22 and overnight delivery up until 3pm December 23.
FedEx said it is also trying to help by increasing its seasonal staffing levels by 25 per cent, spending $1 billion to expanding capacity and clearly informing retailers about what delivery windows it can and can't handle.
UPS is spending $500 million to add 6,000 loading docks for its delivery vans and boosting its seasonal hiring by 73 per cent.
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