Memphis, TN-based express parcel carrier FedEx Corp. believes there’s going to be a big surge in holiday freight this year, so it’s making plans to handle about 8.5-million packages on the busiest day of the holiday season – about 400,000 more than last year’s busiest day, said FedEx economist Gene Huang.
“Economic growth continues on a healthy and sustainable pace with recent indicators suggesting that the holiday season will be solid,” Huang said. “Improving trends in merchandise sales, business orders, the services sector and employment in the U.S. remain in place, and this bodes well for holiday sales.”
Huang noted that, according to research firm eMarketer, online retail sales are expected to grow 22% in the final three months of 2005 to roughly $26 billion. “With consumers spending more time online, e-commerce will likely drive more holiday activity this season than in the past,” he said.
The 8.5-million packages expected to move through the FedEx Ground and FedEx Express networks on Dec. 12 will represent a 40% increase from the average daily volume of 6 million. Also, the company expects to process a daily average of 3.5-million to 4-million online tracking requests during the peak season.