FedEx Breaking Records in 2012
With 19 million packages set to pass through its system on Monday, FedEx (NYSE:FDX) has labeled December 10 as the busiest day in its history.
Workers are expected to process more than 200 parcels per second, and FedEx anticipates that the trend towards increasing package volumes will continue for the remainder of the holiday season. According to a press release announcing Monday’s record shipments, FedEx said that this holiday season could break records as well; the company projected that 280 million packages will be shipped between Thanksgiving and Christmas, a 13 percent increase from last year.
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Previously, the company’s busiest day was December 12, 2011, on which day FedEx handled 17.2 million shipments.
To deal with the added volume, the parcel shipper has added 20,000 seasonal employees to its 300,000-person workforce.
FedEx attributed the rise in shipments this year to the increasing popularity of online shopping, which eMarketer said will rise by 17 percent this season.
As FedEx and its rival UPS (NYSE:UPS) are considered to be economic indicators, due to the volume of goods handled by both companies, the growing number of holiday shipments suggests that the American economy is recovering to a small degree. However, for FedEx, the shipment increases have a downside. Customers are increasingly choosing cheaper and slower delivery services over its high-priced premium delivery service, which has forced FedEx to adopt cost-cutting measures that will lower yearly expenses by 1.7 billion and include employee buyouts.