There are concerns with regards to if there will be enough capacity to handle the holiday shipments successfully. The concerns are as a result of truckers expecting an unprecedented holiday shipping spree. A report by Ware2Go indicated that the dynamics brought about by the corona-virus epidemic are to come with lots of demand never seen before. FedEx Corp. earlier on made similar claims to what Ware2Go's survey indicates. Ware2Go CEO Steve Denton stated that the volumes of shipment expected this year’s holiday period will be so high.
74% of merchants are expecting an increment in demand
The surveyindicates that 74% of merchants are expecting an increment in demand, and 56%believe that the spike will be at or even higher compared to the previousyear's figures. The holiday period is also expected to last longer as someretailers are to engage in black Friday sales earlier to uphold the socialdistancing rules. Denton also added that the peak period may run through toJanuary.
Unprecedented Holiday Shipping Spree
Similarly, FedExand UPS have set their expectations so high, anticipating a busy holidayseason. The director of transportation consulting at IHS Markit Economics, PaulBingham, said that in the retail sector, e-commerce has been highly embracedduring the pandemic. DHL e-commerce solutions expect a 30% to 50% volumeincrease compared to last year as at the same time, DHL Express expects to make50% more in terms of inbound volumes compared to the previous high seasons.
The vicepresident of rail and intermodal at FTR Transportation Intelligence, ToddTranausky, said that they had quite a huge market as far as demand isconcerned, and more is to come as they are expected to meet the demands of notonly the holiday season but also the retailers trying to restock. Most peopleare indoors therefore, most of them are expected to spend more on the purchaseof goods. Tranausky reiterated the fact that it’s the consumers who can keepthe economy running since the levels of unemployment have disastrously risen,and he is unsure if the government will strike any other stimulus packages.
"Most customers are accustomed to online purchases, and the same will countinue even after the pandemic."
Lee A. Clair, amanaging partner at Transportation and Logistics Advisors, noted that the seasonis set to be a difficult one, with the capacity to meet the demand being doubted.All freight modes are experiencing hard times to meet capacity demands. Mostcustomers are accustomed to online purchases, and the same will continue evenafter the pandemic, according to Bingham. Logistyx Technologies President KenFleming also added that even large merchants have already started issuingwarnings of the fact that they won’t be able to meet the demand that easily.
