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A flood of mail and online shopping for the holidays is swamping the US shipping system. An estimated 6 million packages per day are abandoned, inactive in warehouses or retail shipping centers and awaiting pickup by FedEx, UPS, Amazon, US Postal Service and other shippers.
That’s according to estimates from ShipMatrix, a software company that helps retailers and others track shipments and collects data on millions of packages sent from over 100,000 locations in the United States. , the data show.
“Our entire industry is underwater because of demand,” said Satish Jindel, President of ShipMatrix. Friday will likely be the last day consumers can ship items by regular mail to arrive before Christmas, he said.
Traffic jams are reducing the holiday shopping season, frustrating shoppers and retailers, as well as potentially hurting the economy as the market recovers. Coronavirus pandemic seems to sizzle. Some experts warn that packages that have not yet been sent by post will not reach their destination using standard delivery before the Christmas holidays.
Another industry insider with access to internal data for a large shipping company told CBS MoneyWatch that the number of packages not picked up each day is much higher this holiday season than in previous years. A big winter storm bearing on the northeast could mean more delays.
FedEx and UPS refused to disclose the number of packages delayed in transit. A UPS spokesperson said 96% of its shipments arrived on time this holiday season. But that figure only includes the packages UPS collected – not the ones it missed.
“This has been one of the most successful peak shipping seasons ever as we are focused on maintaining a reliable delivery network that all of our customers can rely on,” said a UPS spokesperson at CBS MoneyWatch in an emailed statement.
“The data provided by third-party consultants can vary widely depending on the specific markets, customers and shipping routes they choose for their analyzes,” a FedEx spokesperson said via email. She also said the company’s role in helping distribute the Pfizer-BioNTech vaccine did not affect regular shipments, noting that the company was using a separate fleet of trucks and planes for this effort.
“As previously stated, we continue to work closely with our customers to manage their volume and help ensure the best possible service,” added the FedEx spokesperson.
“Waiting for reimbursement request”
A number of retailers say they are facing shipping delays. Earlier this month, Victoria’s Secret owner L Brands warned investors in a filing with the United States Securities and Exchange Commission that “additional constraints” on shipping capacity during the holidays could hurt sales. On Tuesday, Etsy also updated its shipping deadlines for its retailers and asked them to add the dates to their product description pages.
Arlene Marie Mathews, a Milford, Pa.-Based supplier who sells bath and aromatherapy lotions on Etsy and typically ships via the U.S. Postal Service, said customers had been experiencing delays since late November and some orders were delayed for two weeks. On Wednesday, she updated her product page on Etsy to warn that orders can arrive up to 10 business days late.
“I’m currently inundated with messages from customers asking where their packages are. Some get it, some don’t,” Mathews told CBS MoneyWatch. “I am waiting for refund request messages to start flooding my inbox at any time.”
Etsy said it would allow sellers to report deletion of all negative reviews from customers complaining only of shipping issues. A spokesperson for the e-commerce company said it has “dynamically adjusted estimated delivery dates” on its website to provide buyers with the latest information.
“We know the holidays are an extremely important time for the 3.7 million creative entrepreneurs who sell on Etsy,” the spokesperson said in a statement. “To address carrier delays in the United States, our focus is on supporting sellers by making the latest information available to us.”
Olive & Cocoa, an online gift basket retailer based in Salt Lake City, Utah, is warning customers of possible delays and the fact that shipping windows are running out. Wednesday was the last day the website announced it could ship orders via Standard Shipping for delivery before Christmas. Subsequent orders will not arrive until December 29th. Two-day delivery is not available on the site until January, although time slots remain for faster and more expensive deliveries.
“Olive & Cocoa recognizes that the entire shipping system is overloaded,” an Olive & Cocoa spokesperson said in an emailed statement to CBS MoneyWatch. “We work closely with our shipping partners to provide our customers with the best possible information on availability and shipping times, and to ensure that Christmas gifts ordered from Olive & Cocoa are delivered from a in a manner consistent with our high standards of customer service. . “
Growing frustration
Holiday shipping delays are causing headaches for consumers. Christine and Bruce Merevick from Chicago cannot see their family in Alabama for Christmas because he is undergoing chemotherapy and is considered at high risk for COVID-19. Increasing their frustration, the Merevicks’ vacation package, which they sent as a priority and insured in early December, has still not arrived. They filed a complaint, but were told to come back in two weeks.
“It’s just very frustrating,” Christine told CBS Chicago’s Tara Molina. “They have no idea where he is.”
CBS News correspondent Janet Shamlian reported this week that FedEx and UPS have told some retailers that they will not be collecting additional packages beyond their previous commitments until retailers see an increase in orders. This resulted in more orders being sent to the USPS, adding to the mail delays that started this summer. Earlier this week, the USPS, in a public statement, encouraged customers to send in their gifts and vacation cards “as soon as possible.”
Even before the holidays, shipping delays had been a problem during the pandemic, which prompted some consumers to increase their online orders and avoid in-person purchases. FedEx and UPS began increasing their hires as early as November to be prepared for the expected surge in deliveries, adding up to 170,000 workers combined for the season. But these issues are now encroaching on many people’s vacations.
“It was not possible for shippers to be ready,” said Jindel of ShipMatrix. “It would have taken two or three years to be ready for the surge in demand this year.”
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