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United Parcel Service, Inc. (UPS), FedEx Corporation (FDX) Have A Better Holiday Season Than Last Year


United Parcel Service, Inc. (NYSE:UPS) and FedEx Corporation (NYSE:FDX) managed to do more holiday deliveries this year compared to last year. Several positive factors came into play and helped the shipping companies to escape the problems of 2013. The success witnessed this year should help the companies improve their delivery performances and financial gains in the future.

98% success rate this holiday season

According to data supplied by Shipmatrix Inc, both United Parcel Service, Inc. (NYSE:UPS) and FedEx Corporation (NYSE:FDX) improved on their express deliveries. For example, the two shipping companies this year managed to achieve 98% success rate in the delivery of express packages on December 24. That compared with 90% for UPS and 83% for FDX witnessed in the same period last year.

United Parcel Service, Inc. (NYSE:UPS) and FedEx Corporation (NYSE:FDX) provided their delivery performance estimates ahead of the holiday season. UPS had estimated that it would deliver 585 million packages in the month of December 2014 if all progressed as planned. That indicated potential uptick of 11% in deliveries compared with last year.  On its part, FDX anticipated delivery of 290 million packages for the period between Thanksgiving and Christmas. That signaled potential uptick of 9% over the same period a year ago.

Favorable factors

The shipping companies managed to improve their express delivery performance this year because of factors that included favorable weather and improvement in logistics. Last year’s holiday season was adversely impacted by harsh winter weather that derailed the operations of the shipping companies. The weather was favorable for deliveries this year.

Both United Parcel Service, Inc. (NYSE:UPS) and FedEx Corporation (NYSE:FDX) hired more contract staff this year to help meet their staff needs during the holiday season. The move proved to be beneficial as everything moved smoothly as planned.

The shipping companies also imposed on retailers a strict restriction on last-minute orders. Most of the challenges witnessed last year resulted from last-minute deliveries.

Still, increase in volumes this year saw FedEx Corporation (NYSE:FDX) making Christmas day deliveries, which is usually not a start practice for shipping companies. United Parcel Service, Inc. (NYSE:UPS) avoided deliveries on December 25.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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