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Parcel volumes set to climb 4% this peak season as retailers face mounting shipping costs

Parcel carriers will handle approximately 2.4 billion packages during the current peak shipping season, representing a 4% increase year-over-year, driven partly by an additional shopping day on the calendar. The projected volume marks the highest level since 2022's pandemic-era e-commerce surge. Despite inflationary pressures and rising fuel costs, consumer spending has remained resilient through the season. However, retailers face a 16% jump in parcel shipping rates compared to last year, with fuel surcharges accounting for roughly 30% of transportation costs. Many retailers have responded by raising free-shipping thresholds. UPS plans to hire 100,000 seasonal workers, down from 109,000 last year. Amazon is bringing on 300,000 temporary workers, up 20% year-over-year. The U.S. Postal Service will add 10,000 seasonal workers.