Shipping Companies Brace for Last-Minute Deliveries

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Shipping companies are expecting a torrent of holiday business today, with DHL, FedEx Corp., and the U.S. Postal Service predicting it will be their highest shipping volume of the year.

“Everyone waits until the last minute to send their holiday gifts,” a manager for Mail Boxes Etc., Peter Boggia, said. “People end up spending more on last-minute shipping than they did on the gift itself.”

Such a high volume of mail is expected because today is the last opportunity to get gifts delivered on time without incurring exorbitant rushed shipping costs, Mr. Boggia said.

FedEx estimates it will break company volume records when 11.3 million packages move through its networks, amounting to a 60% increase over average daily traffic. Similarly, DHL expects a 50% increase over its average volume.

The U.S. Postal Service predicts that it will deliver almost 1 billion pieces of mail today — more than a quarter of which will be cards and letters. On a normal day, it handles only a third of that total.

It isn’t just America where letters and packages will flood the mail. FedEx expects its international markets to see their busiest day of the year today, too. Even countries such as China and India, where Christmas is not as widely celebrated, are expected to reach peak volume for the year.

Shipping companies are beefing up their systems in preparation for the bump: UPS has added more than 60,000 seasonal employees, and DHL is flying more than 425 additional domestic routes.

The executive vice president of operations for DHL USA, John Cameron, said he is confident DHL’s preparations will be sufficient. “DHL’s investment in additional routes, fleet, and staff during the peak season ensures we continue to deliver the highest level of customer service and responsiveness in the face of increasing seasonal demand,” he said in a statement.

Shipping companies are assuring customers that their networks will be ready for even the most extreme procrastinators.

For a price, UPS customers will be allowed to send packages as late as Friday for delivery on Monday. Similarly, DHL is offering a same-day service, which operates seven days a week, 365 days a year. Costs vary according to the size, weight, and destination of the package.

Despite signs that America’s holiday shoppers are spending less this season, the CEO of Fedex Corp., Frederick Smith, said he is optimistic.

“While overall economic growth has slowed, there are several indicators for a healthy holiday season,” he said. Online sales are projected to be especially strong this holiday season, according to TNS Retail Forward, which bodes well for shipping companies.


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