ShipMatrix data provides insight into delivery on-time performance for July and August

Data recently provided to LM by ShipMatrix, a subsidiary of Pittsburgh-based SJ Consulting showed somewhat mixed on—time performance (OTP) ranges, in July and August, for major parcel carriers, including UPS, FedEx, and the United States Postal Service (USPS).    

ShipMatrix President Satish Jindel said that this data is based on millions of packages shipped via UPS, FedEx, and USPS.

“They are performing at different levels, though the gap between FedEx and the other two is greater than is the case in normal times (pre-COVID-19 pandemic),” said Jindel.

ShipMatrix reported the following for July and August OTP metrics:

• July: FedEx, 90.2%; UPS, 96.2%, and USPS, 97.2%; and
• August: FedEx, 86.4%; UPS, 95.3%, and USPS, 97.15%

Jindel said that FedEx OTP for August may be lower, due to the lack of posting weather related delays (like Hurricane Ida).

“Even then, if it increases to 90% like July, it still implies that 10% of all FedEx packages are delivered late,” he said. “And, that means 5% of UPS and 3% of USPS parcels are delivered late. And, with these three carriers collectively handling about 48 million parcels per day in September, about 3 million parcels per day are being delivered late.”

What’s more, he explained that since ShipMatrix has estimated that the demand will exceed capacity by 4.7 million per day the 2021 Peak Season.   

“While it is better than 2020 peak, when the shortfall was 7.3 million parcels per day, over 5 million per day may be delivered late during the holiday season and the Christmas week,” he said. “So, the consumers should allow a week for delivery of their Christmas orders and thereby place those online orders no later than Dec 17, 2021.”

ShipMatrix did not provide July and Augsut OTP data for Amazon Logistics.

“Amazon Logistics is a very different situation,” noted Jindel. “It is not even apples and oranges, it is apples and pork. Over 95% of Amazon Logistics deliveries are within 100 miles of the fulfillment and hence it does not face the same challenges associated with moving parcels from west to east coast or from Chicago to Dallas.”