Tech

Difficult Days Await Transport Companies In The Holiday Season

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With the start of the holiday season and the impact of the coronavirus, hard times await transport companies in the USA in the coming days. According to reports, the number of packages to be delivered has increased by about 40% this year compared to the same period last year.

Online shopping has become a lifestyle for consumers and companies with the impact of the pandemic. However, this holiday season is expected to push the online shopping industry in the US as never before as More than 3 billion package has. This means 800 million more packages to be delivered compared to last year.

While these deliveries are pushing the shipping companies to a great extent, due to the pandemic, there are already far fewer customers small businesses inside, danger bells ring. For this reason, companies do not want to give customers any reason to think that they cannot deliver their orders.

Transport companies work extra overtime:

Shipping

Many haulage companies expanded their weekend deliveries and hired more workers to meet high demand. These companies, which have a strong trump against retailers, do not want to ship during the holiday period. they bring exorbitant surcharges and they are known to have strict restrictions on how many packages are sent each day.

Even though the transport companies have a very busy holiday season, there is a bigger fish that puts them under pressure: Amazon. At this point, if transport companies falter during the holiday season, this will strengthen the dominance of Amazon, which has largely established its own logistics business and has become increasingly independent in this area.

Hundreds of thousands of seasonal workers were recruited:

Shipping

Usually the shipping volume during the holiday period is 30% to 40% higher compared to other times of the year. But to these levels long before has been reached and even the industry giant Amazon had a hard time keeping up with the demand in the early days of the epidemic.

On the other hand, shipping companies say they are better prepared for the upcoming period. FedEx at this point 70 thousand seasonal employees while saying it’s hiring, UPS is 100 thousand people He said he would hire. But even all this is in North America 100 new fulfillment warehouses, sorting centers and delivery facilities pale next to Amazon, who says he built it. So much so that the company since the beginning of the year 275 thousand full-time and part-time workers to handle increasing volume with 100 thousand seasonal worker hired.

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Despite all this, analysts say that order delays are relatively minimal says it is. For this reason, it is believed that the shopping season has spread over the months and transportation congestion is avoided.

Source :
https://www.nytimes.com/2020/12/05/business/ecommerce-shipping-holiday-season.html

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