On Time Delivery Rates and FedEx Ground

On time delivery rates are a vital metric for any delivery service to meet. People want to know that what they ship or what they order will arrive on time. Think of it from two perspectives:

  • The customer who orders the item has a reason they have ordered now and need the item delivered in a timely manner for a variety of reasons. If it doesn’t, they often blame the shipper rather than the shipping company.
  • The shipper doesn’t want to field these complaints, make excuses, or worse yet, blame the shipping company for packages arriving late. If a shipping company is consistently late, they will simply ship with another company.

It’s important to remember that customers have choices when it comes to shipping, and one of the reasons shippers and customers who place orders in your area choose FedEx Ground is you, and your on-time record.

So what are on time delivery rates for FedEx Ground this holiday season, why are they improving, and what role do you as a route owner or driver play?

Online Demand for On Time Delivery

First, one of the reasons many carriers struggled in 2021 was that online demand was much higher than typical and even higher than what was expected. After 2020 many shippers assumed shoppers would return to in-person shopping, but it simply did not happen as quickly as anticipated.

However, according to Freight Waves, the volume is down somewhat this year, in part due to inflation and lower budgets, and in part due to increased in-person shopping. This means that on time delivery rates for most carriers are higher this year, including FedEx Ground.

Shipping Lane Capacity

After the last couple of years, most carriers have increased their shipping lane capacity, meaning they can ship more packages along the same routes without overwhelming resources. This was in large part in response to shopping habits of the last couple of years, and in part due to automation in the shipping industry, making terminals more efficient.

This makes for a better customer experience, more on time or even early deliveries, and fewer late packages.

This also helps in the event of weather delays, which while they cannot be prevented, can be planned for and mitigated with greater “recovery capacity” after a disruptive event.

Labor Shortages Easing

Another factor in increased on time delivery is an improved labor market. FedEx significantly beefed up its labor force for the holiday, offering much-needed help (and some financial assistance as well) to the many FedEx Ground contractors who make deliveries possible. This decreases the likelihood of late packages and increases contractor readiness.

This is good news for contractors who hire extra drivers and helpers as well. You’re more likely to find the people you need through the holidays and throughout the year when there is a larger pool of skilled workers.

On Time Delivery Rates and You

What can you do to help increase on time delivery rates as a FedEx Ground contractor or driver? Well, there are several things:

  • Make sure you have enough personnel for the peak season. Hire temporary help as needed.
  • Keep your vehicles in good shape. A breakdown can seriously impact your on time delivery rates.
  • Watch the weather. Planning ahead for storms or other events can help you make as many deliveries as possible without delays.

There are other things you can do as well, like finding alternate delivery locations for residential customers in potentially hard-to-reach areas, avoiding getting stuck in the snow or ice, and running your route at optimal times.

The New Normal

Customers and shippers both expect fast, accurate delivery, and that has become the new normal. Higher volumes, faster shipping lanes, and fewer labor shortages will continue to improve conditions. While there will always be times when inflation and other factors may reduce profit margins, you can keep on time delivery rates high, and win customers on service alone.

And if you are a route owner who is thinking of selling your route, or you are looking for a new business opportunity, FedEx Ground routes provide a great opportunity. When you’re ready, contact us at Route Advisors. We’ll be with you every step of the process.

Happy Holidays, and Happy Peak Season.

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