Parcel shipping demand to increase 4% during holidays, ShipMatrix says

Parcel carriers will deliver about 2.4 billion packages during the current peak shipping season, up 4% from the same period last year, despite high inflation, according to an estimate from ShipMatrix. The increase in parcel demand is aided by an extra shopping day this holiday season, said ShipMatrix, which helps shippers get more out of their FedEx (NYSE: FDX), UPS (NYSE: UPS) and regional carrier agreements. The projected volume would be the highest level for the parcel industry since 2022, when the Covid-triggered spike in e-commerce reached its peak. Consumers have remained resilient so far this year in the face of rising fuel costs and overall inflation, which have diminished discretionary income.