UPS and FedEx don’t have enough vans to track deliveries

The pandemic is fueling a boom in online shopping. Parcel volumes are reaching record highs for couriers like FedEx and UPS. There are so many packages to deliver that companies cannot have enough vehicles to deliver them.

Factories that built delivery vans closed during the early days of the pandemic and, although they have reopened and are approaching pre-pandemic capacity, they still cannot meet the demand for new vans, Bloomberg reports.

In order to keep up with demand, delivery van rental companies are purchasing vans wherever they can find them. Businesses are so desperate that they even buy used vehicles.

FedEx and UPS both experience record spikes in parcel deliveries as the pandemic erupts just before the holidays. UPS alone saw a 21% increase in quarterly volume, the largest increase the company has ever seen. The peak shows no signs of slowing down as bboth companies expect even higher volumes during the holidays, which will put even more pressure on capacity.

FedEx offers an allowance to its independent contractors to have to lease or lease more vehicles than usual during this period. While FedEx and UPS don’t expect the van shortage to impact deliveries, it can reduce profits and make deliveries more expensive.

Steve Myers, senior vice president of operations at FedEx, said via Bloomberg:

Many of our service providers, especially in the peak season, have turned more to the rental market.

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So we are working with them on this.

Honestly, while I thought online shopping increased during the pandemic, I never really thought about its impact on shipments. For UPS and FedEx, it’s like Christmas is coming in July and yet Christmas is yet to come. It will be interesting to see what impact this will have on prices and delivery times.