FedEx Forecasts Record Level Of Holiday Package Deliveries - InvestingChannel

FedEx Forecasts Record Level Of Holiday Package Deliveries

FedEx (NYSE:FDX) is forecasting a 10% increase in holiday package deliveries this year, saying they should reach record levels as consumers continue to rely on internet shopping.

The logistics and delivery company says it anticipates volumes will be 100 million more packages this December compared with pre-pandemic levels in 2019. The peak holiday season starts next week during the U.S. Thanksgiving weekend.

The Black Friday and Cyber Monday sales events bookend the U.S. Thanksgiving weekend, and FedEx says it expects to handle 32 million packages worldwide during that period. The other busiest days for the holiday season will be the last Tuesday in November and the first two Mondays in December, the company said.

FedEx has been preparing for months for the package onslaught and said in a statement it will be able to handle the volume thanks to “our leaning into e-commerce and making billions of dollars of investments.”

Many couriers and retailers face challenges spanning from shortages of warehouse workers and truck drivers to a choked supply-chain that may keep merchandise from hitting distribution centers in time for the holidays.

FedEx said a worker shortage has increased its costs by $450 million U.S. in its latest quarter because of higher wages and capacity constraints at its sorting hubs.