As the global economy continues to rebound from the COVID-19 pandemic commercial demand and volumes within carrier networks is still an issue. Elevate works closely with our partner carriers to provide the best possible experience, but the recent events continue to cause delays across all carrier networks. A recent update provided the following data points that should be taken into consideration when planning for the 2022 peak season.
- Commercial demand and volumes have exceeded Pre-COVID-19 levels and are up 9% according to the IATA
- The US Domestic parcel market is expected to surpass 107 million daily packages in 2022. It was previously estimated that the market would hit that level in 2024
- US Consumer spending increased by 44% in 2020 and that trend is likely to continue in the near future.
- Global air cargo capacity remains an issue due to continued reduction in passenger flights
- With uncertainty in ocean container capacity, global air cargo capacity is being used an accelerated rate.
- The global ocean container shipping industry continues to experience severe pressure due to port congestion, a shortage of empty containers, and low schedule reliability.
FedEx/UPS/USPS
Please note that carriers are likely to impose strict caps on parcels picked up each day through Q4 of 2022. Elevate cannot guarantee that all packages processed on a particular day will show a pickup scan from the carrier and delivery delays are likely to continue. All carriers continue to set expectations for holiday and peak planning by telling customers to expect delays. All of the small parcel carriers are already exceeding capacities within their respective networks. We continually see data showing volumes exceeding daily max capacity and this will only become more severe as peak gets closer and closer.
Neither FedEx, nor UPS are offering shipping guarantees for any shipping methods with the exception of one day transit service methods (Next Day Air/Overnight) and additional surcharges are in effect. Occasionally, carriers are refusing to pick up packages because of network capacity issues.
Elevate strongly suggests that e-Commerce sellers are very careful when offering express options to customers. Ground, 2 Day, and Economy Express options are not guaranteed with the carriers. Almost all carriers will be implementing a peak surcharge fee through the holiday shipping season.
In preparation for the holiday/peak season, some of our clients are posting carrier transit delays and non guarantee notices on the home page of e-Commerce sites and during the checkout process to help customers better understand any potential delays. Elevate places daily priority processing on express packages to ensure parcels are processed on time and ready for carrier pickup. Please understand that we expect delays with pickup, initial scan, and regular movement through the carrier networks for all parcels including Express and Overnight shipping methods.
These delays should be taken into account when considering Q4 shipping plans and messaging to end customers regarding guarantees. Refer to the current Service Level Guarantees for the major carriers along with the recommended Last Days to Ship.
FedEx Service Level Guarantees
Amazon FBA - Amazon Freight
Elevate is still seeing regular delays for pickup with Amazon FBA orders and shipments. Delays of 1-2 weeks are common. In some cases FBA orders have waited up to 6 weeks for pickup with Amazon Carriers.
Should you have any questions or concerns please reach out. We will be happy to discuss solutions with you.