Mixed messages in week 50. FedEx dropped to 81.3% while UPS rebounded to 93%. FedEx’s percentage is based off a smaller sample size due to how they invoice but it does provide credence into Amazon’s decision to pull FedEx as an option for third party sellers. UPS’s volume reflected a drop from week 49 which helped them to boost their on-time percentage.
Although both carriers have waived everyone’s right to refunds on late packages between Thanksgiving and Christmas, shippers should continue to monitor the on-time performance. Poor performance can be used as leverage for future negotiations. Great performance can be used as a best-practice guide for 2020 planning. It’s never too early to start planning for peak!
Shippers should also review their returns processes as they will spike in the coming weeks. Charges for labels to be printed or emailed, call tags and other associated fees can be greatly reduced in any negotiation.
Keith Myers is Senior Consultant, Shipware.