FedEx today predicted it will deliver record holiday volumes this December, up about 12% on lastyear, thanks to strong e-commerce growth in the USA and around the world.
Between Thanksgiving and Christmas, FedEx forecasts more than 260 million shipments will movethrough its worldwide shipping networks, which would be a 12% increase for the holiday season overlast year when 232 million shipments were processed.
The company said it expects to move more than 17 million shipments, almost double its dailyaverage volume, through its global networks on December 12, the projected busiest day in companyhistory. This 10% year-over-year increase will be driven by FedEx SmartPost, with a likely 30%volume rise, as well as expected increased volume at FedEx Ground and FedEx Home Delivery.
“As e-commerce continues to grow and demand increases with more customers shopping andconducting their business online, FedEx SmartPost is poised to handle the increase in shipments,”said Frederick W. Smith, chairman, president and CEO of FedEx Corp. “More than 290,000 FedExteam members also stand ready to deliver the holidays and enable commerce around the globe.”
Retail inventory such as apparel, personal consumer electronics and luxury goods as well asbooks and other items from large, internet retailers will account for a large portion of FedExholiday volumes.
FedEx plans to increase its workforce by approximately 20,000 with seasonal positions to helphandle the surge in holiday shipments at FedEx Ground, FedEx Home Delivery and FedEx SmartPost.
US consumers are expected to increase their end-of-year holiday spending by 2.8% to total salesof $465.6 billion during November and December, according to the National Retail Federation(NRF). This is higher than the 2.6% average increase over the last ten years. Nearly halfof shoppers (46.7%) will buy online as compared to 43.9% in 2010, the NRF predicted. Accordingto eMarketer, holiday online shopping will increase by 12% during the 2011 season.
Fast-growing FedEx SmartPost, with a 29% volume increase in the June-August 2011 quarter, isdesigned for online retailers and cataloguers who ship high volumes of low-weight shipments toresidential customers. The business has an integrated national network that picks up, sortsand delivers packages directly to US Postal Service facilities for final delivery toresidences.
FedEx Ground has invested heavily in its network over the last decade to speed up deliveries,opening 11 new distribution hubs and with expansion or relocation of more than 500 otherfacilities. The business now delivers 82% of its packages in 3 days or less, 61% in 2 days or less,and 23% on the next business day.
