Economy Watch: FedEx to Handle Record Number of Packages

Further evidence of e-commerce's booming sales growth, FedEx is adding 50,000 seasonal workers and investing $1.5 billion to enhance its delivery efficiencies to handle an expected record volume of packages this holiday season.

presents-1058800_1920As the country and retailers ramp up for the holiday season, there’s more evidence that e-commerce is going to have a sales year unlike any other: FedEx expects to see a record number of packages traverse its global network over the 2017 peak holiday shipping season, the company reported recently.

For the total season, the company expects to handle a volume of between 380 million to 400 million packages. Changing market dynamics related to the growth of e-commerce are expected to once again drive the highest surges in demand on Mondays.

Magic Mondays

FedEx is expecting three Mondays during peak (in December, that is) to more than double its average daily volume, handling 26 million packages each of those days. Why Mondays? That’s when weekend orders are fulfilled. But beyond just the rise in overall volume, there are other industry dynamics at work, FedEx said.

For one thing, holiday promotions and buying patterns have increasingly shifted, resulting in heavy demand for package delivery on Mondays during peak. Also, the intensity for demand on Monday has accelerated in recent years as more and more retail locations have started serving as fulfillment centers for e-commerce orders.

The shipping giant is adding 50,000 seasonal workers this year and investing $1.5 billion to enhance efficiencies in its FedEx Ground network. The company is also adding more drop-off centers at Walgreens, Albertsons and Kroger stores.