The holiday season is certainly a busy season for everyone, especially trucking companies across the United States. Holiday retail sales and factory shipments spurred big growth in the trucking sector during the 2014 holiday season. The American Trucking Association reported that tonnage increased by 3.5% during November. December is also anticipated to record high tonnage increases as well. And those companies that ship freight by truck should be thanking their freight forwarders for setting them up with great trucking rates.
Last holiday season, the trucking industry was damaged by the 2014 blunder that resulted in a delay of shipments delivered after Christmas, instead of before. UPS lost about $50 million from the holiday season refunds last year. In 2014, UPS is taking precautions to prevent the same blunders from occurring again. They are anticipating a strong delivery rush right before Christmas. As a result, they invested $500 million in projects and upgrades for the holidays. UPS also turned a parking lot into a temporary packaging and sorting center for the holidays.
With more consumers going online to buy holiday gifts, online retailers are not making it easier for the trucking carriers. Websites like Amazon and Wal-Mart extended their shipping deadline to move closer to Christmas. One deadline from Amazon included free 2-day shipping by December 22nd. And there were deals in major US cities for same-day ordering by Christmas Eve. The National Retail Federation said that November online sales grew 6.3% year-over-year. And a big reason for their success is because of the trucking industry.