I’m Jay Kent, managing director of SLB Performance, a consulting firm that helps companies reduce supply chain costs, implement BI tools, and improve in-stock and customer service. After 25 years of leading some of the most complex supply chains in the industry, I began advising companies in multiple industries and verticals. It’s important to understand the market to mitigate costs and improve efficiencies. So, twice a month, I’ll share parcel news and thoughts. Be sure to hit the subscribe button to receive the latest newsletter in your LinkedIn notifications.
The lower holiday parcel volumes are helping to contribute to improved on-time deliveries, according to ShipMatrix. During Cyber Week, UPS posted a 98% on-time delivery performance, while FedEx came in at 97.8%. During the same period in 2022, UPS posted a 96.6% on-time delivery rate, while FedEx posted a 95.3% on-time rate. However, the U.S. Postal Service posted a 95.2% on-time delivery rate during the 2023 cycle, down from 95.8% in 2022 – likely due to its network investments per its Delivery for America strategy. An interesting note from ShipMatrix that is also leading to improved on-time deliveries is that UPS and FedEx have relaxed their transit times on many lanes by adding an extra day to their delivery schedules.
Fuel Surcharges
UPS raised its fuel surcharge table on its U.S. ground parcel and SurePost delivery services by 50 basis points, while FedEx Ground raised its diesel fuel surcharge table by 100 basis points. This is a kind of head-scratcher because average diesel fuel prices have been on a decline.
Employment
The US Bureau of Labor Statistics reported November employmentlast week. A bit of ‘normalizing’ appears to be occurring to match declining volumes. Year-to-date, courier and messenger employment is down 1.3% compared to the same period in 2022. Year-to-date, compared to 2021, employment is up 3.5%, up 17.4% for 2020 and up 36.1% for 2019.
New Delivery Options
- Uber Technologies launched a store pickup service in which a buyer can arrange to have goods picked up at a store and delivered to a residence. Under the service, following the completion of a purchase, a consumer uploads the receipt in the Uber app to trigger the courier pickup. Items must be less than $200 in value and weigh less than 30 pounds. Customers can also track their pickup delivery in real-time in the Uber app and will be notified when the drop-off is completed.
- e-commerce platform, Wish, launched WishPost Smart Parcel – a Logistics as a Service (Laas) product for non-Wish merchants in mid-November. leverages Wish’s global network of Logistics Service Providers (LSP), which spans first-mile, international line haul, customs brokerage, and last-mile delivery. More from Supply Chain Dive.
That’s it for now. Comments are always welcome. Reach out if you’d like to learn how to lower or even possibly eliminate the Additional Handling surcharge or any other parcel fee. Stay tuned for the next newsletter on Dec 27, and don’t forget to hit the subscribe button to ensure you receive it in your LinkedIn notices.
– Jay