Surge in U.S. Holiday Deliveries Despite Tariff Challenges

U.S. delivery companies are projected to handle 2.3 billion packages this holiday season, a 5% increase from last year. The rise is attributed to an additional shopping day despite tariff-induced challenges. FedEx and Amazon are expected to see an increase in parcel volumes, unlike UPS and USPS.

U.S. delivery companies are poised to manage a record 2.3 billion packages this holiday season, marking a 5% increase compared to the previous year. This surge comes despite the pressures from President Donald Trump's tariff policies, as an extra shopping day provides some relief to the sector.

The holiday delivery season captivates investor interest as companies like FedEx and UPS often double their usual package numbers during this timeframe. However, the anticipated growth in deliveries will not be uniform across all companies, as per logistics tech provider ShipMatrix.

Trump's fluctuating tariff policy has cooled U.S. business investments, while consumers grow cautious of rising prices, impacting delivery demands. FedEx and UPS have noted a decline in volumes since import duty exemptions on low-value goods were abolished, suppressing an already delicate market.

(With inputs from agencies.)