Shippers struggle to land carrier space despite preparing for peak early

Parcel carriers’ recent investments in capacity may still not be enough for peak season, leading shippers to prepare for another challenging holiday period with limited space and higher costs.

During the 2021 holiday shipping season, delivery demand is expected to exceed capacity by 5 million pieces a day, UPS CEO Carol Tomé said on the company’s Q2 earnings call Tuesday. The looming capacity crunch, fueled in part by the online shopping surge, and other challenges throughout the order-to-delivery process mean retailers not already gearing up for peak will have a bumpy holiday season, experts say.

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