After a Dizzying Transportation Summer, Shippers Lead with Agility into Peak Season

It’s no secret this year’s peak season is highly anticipated to be significant in terms of both volume and spend (for carriers, shippers, consumers, and anyone else in-between). From decreasing capacity and increasing delivery delays, carriers of all size have been largely challenged by the e-commerce boom driven by COVID-19. In fact, many implemented new surcharges prior to peak in an effort to overcome “peak-like” traffic fueled by the pandemic, and both new and more costly surcharges have been announced early for peak from the Big 2 all the way down to regionals. It’s been a dizzying summer for shippers to say the least, and consumers seem to be taking more interest in how their purchases are being shipped and when they’ll be delivered than ever before. With rising costs and customer loyalty at stake, shippers are now working to find new and creative solutions to carry them not just through peak, but beyond. Shippers are making themselves more flexible in order to succeed – from carrier diversification, substituting Last Mile Delivery via in-store or curbside pickup, and rethinking their brand strategy – no stone is being left unturned.

Whether they’re increasing the number of automated stations and sortation facilities to better serve overwhelmed and heavily-trafficked pockets of the U.S., choosing sustainably profitable partnerships over high-volume ones, or implementing and researching innovative technology for faster sorting on the ground and safer delivery via air, it’s clear that carriers are expressing a commitment to improving their networks as a whole – to be “better, not bigger” as UPS’s Carol Tomé says.

Shippers, carriers, and consumers across the board have felt the weight of COVID-19, as well as the mixed emotions of appreciation and apprehension for e-commerce technology. Carrier innovation and the Amazon Effect continue to lead the industry forward, while increased demand and rising costs define it. We watch curiously to see which brand strategy creates the next rising star, though we guarantee an omnichannel network is behind it.

“We’re preparing for a record peak holiday season. The COVID-19 pandemic has made our services more important than ever,” said Charlene Thomas, Chief Human Resources Officer. “We plan to hire over 100,000 people for UPS’s seasonal jobs, and anticipate a large number will move into permanent roles after the holidays. At a time when millions of Americans are looking for work, these jobs are an opportunity to start a new career with UPS.”