Postal service

Postal Service Stands Out in Latest Peak Delivery Performance Report

The peak season delivery performance of the three major package carriers for the week ending Dec. 11 was roughly in line with the previous week’s levels, while the U.S. Postal Service reported the best year-over-year improvement. other, according to data released Friday by the consultancy. Ship Matrix Inc.

From December 5 to 11, the Postal Service recorded an on-time rate of 95%, compared to 87.5% during the same period in 2020, although slightly lower than the previous week of 2021. UPS inc. (NYSE: UPS) reported an on-time rate of 95.8%, down slightly from 96.1% in the prior week and year-ago period. FedEx Corp. (NYSE: FDX) reported an on-time delivery rate of 84.8%, up slightly from levels the previous week, but down more than 9 percentage points from the 2020 period, according to data from ShipMatrix.

ShipMatrix President Satish Jindel said the year-over-year improvement in postal service is due to the agency’s implementation of a major expansion in parcel handling capacity during of the year. In addition, the Post Office was not overwhelmed as in 2020 by traffic diverted to it by large shippers whose volumes had been capped by FedEx and UPS.

Numerous media reports throughout the fall of supply chain bottlenecks along the West Coast and parts of the East Coast have played a key role in persuading consumers to start shopping holidays earlier than normal, removing much of the traditional peak season pressure on the parcel-delivery ecosystem, Jindel said. Additionally, more holiday merchandise is being delivered to stores to support a year-over-year increase in physical purchases, he said. As a result, parcel carriers can ship large volumes all at once to a central location rather than having to deliver one or two parcels to each residence.

The ability to avoid making multiple stops at each residence has been a key factor in improving delivery performance across the board, but especially for the Postal Service, which by law must pick up and deliver to every address in the states. -United.

Carriers’ delivery performance has been skewed by their shipping policies, especially at FedEx. For example, FedEx’s performance would have jumped nearly 13 percentage points if it had extended its FedEx Ground unit’s delivery commitment to four days from three, and classified all next-day deliveries as on-the-fly. hour, that a parcel has been delivered before 8 am. , 10:30 a.m. and 3:00 p.m., the three delivery deadlines for the unit’s next day service.

UPS and the Postal Service had already made this adjustment to their ground services, Jindel said. At this point in the cycle, consumers aren’t going to push back if a package is delivered by ground in four days, not three, he added.