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UPS, FedEx are reportedly facing a shortage of delivery vans

Transport giants UPS and FedEx are struggling to round up the vans needed to deliver packages amid a surge in demand for services due to the coronavirus, the new report said.

According to Bloomberg News, the pandemic caused the car factory to shut down, and as more people bought things online and shipped them home, they ran out of delivery vans.

This has pushed up the costs of FedEx and UPS, encouraging car leasing companies to buy as many vans as they can find, the news agency reported Wednesday.

“If there’s a freight van there, we’re trying to buy it,” Brendan Keegan, CEO of vehicle provider Merchants Fleet, told Bloomberg. His company plans to lease 15,000 vans at the end of the year, more than double last year’s 6,000.

UPS and FedEx say the shortage does not overwhelm their ability to deliver packages, but it is eating up their profit margins, Bloomberg reports. For example, FedEx is proposing to help deliverers bear the cost of renting more cars than usual during the holidays, company executive Steve Myers told Bloomberg.

The reported shortages are ahead of the holiday shopping season, which can already burden large shippers. About 86 million packages are expected to ship between Thanksgiving and Christmas, but carriers can only deliver about 79 million, the Wall Street Journal reported last month.

UPS, FedEx are reportedly facing a shortage of delivery vans

Source link UPS, FedEx are reportedly facing a shortage of delivery vans

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