Holiday shippers scramble as deadlines near

  • Associated Press
  • Friday, December 14, 2007 11:01pm
  • Business

NEW YORK — FedEx driver Vito Randazzo works long hours this time of year, but the smile never seems to stop.

Working out of one of two Fed-Ex Corp. warehouses in Brooklyn, this day is much like any other, but Randazzo, 48, is noticeably aware of the ramp-up to the busiest day of the year.

Packages crowd the conveyor belt that snakes around the warehouse. Airplane cargo holds loom like massive steel igloos at the start of the belt, as couriers stretch and chat before the belt starts moving and streams boxes filled with Christmas presents, medical supplies and more. The packages are scanned, sorted and directed onto separate belts according to their destination.

The drivers line up by their trucks when the packages arrive at their point on the belt. Randazzo arranges his cargo according to destination on the route he knows by heart.

FedEx expects Monday to be the busiest day of the year. Not including a partnership with the U.S. Postal Service, it expects to haul 10.4 million packages through express and ground service on that day, the last chance to ship via FedEx Ground for Christmas delivery. The prediction represents a 6 percent increase over the 9.8 million shipped on last year’s busiest day.

Analysts suggest major parcel carriers overall should expect the usual holiday rush, although revenue will be likely be muddled by the effects of a weak U.S. economy and changing consumer trends.

Jon Langenfeld, an analyst with investment firm R.W. Baird, said the overall freight market is being dragged down by weakness in the housing and automotive markets, and lower consumer spending. Higher diesel prices are also hurting parcel carriers this holiday season, although FedEx will be affected more than UPS, he said, because express services make up more of its business.

Randazzo, along with thousands of other drivers across the country, will work the two Saturdays before Christmas to account for the increased holiday haul.

The 19-year veteran began his career with the parcel carrier after leaving the family pizza business, lured by the benefits and steady paycheck that support his wife and three children.

Despite the habitual nature of the job, and the amount of knowledge he’s gained over the years, times have changed, Randazzo said.

He now drives one of 95 hybrid trucks in FedEx’s fleet, and one of 48 in the New York City area. His truck no longer requires a key — a wristband with a delicate sensor opens the doors — although the exterior and inner workings still closely resemble the traditional vehicles.

With his truck loaded and organized, Randazzo starts the engine and heads off on his route. While he lives in Staten Island now, the Gravesend neighborhood in Brooklyn was his home for more than twenty years, so he doesn’t need a map.

“I know these streets; these people were my neighbors,” he said.

He leaps out of his truck and weaves from business to business, energized by the four espressos he downed before work.

He enters a doctor’s office, and is regaled with cheers as if he is a long-lost relative.

“Vitooooo!” the receptionist exclaims, as she accepts the package and signs the “Power Pad” — a computerized account of pickups and deliveries. He responds with a smile and some quick chitchat, but he is out the door in a flash, on to his next destination.

His route is as much of a cultural melting pot as New York City itself. He drives from small family businesses to large chains, quaint houses to affluent streets.

FedEx said it expects slowing overall economic growth and slumping U.S. in-store retail sales to be buoyed by surging e-commerce growth.

United Parcel Service Inc., FedEx’s chief competitor, expects to ship 22 million packages on its peak day — Wednesday. The projection represents less than 1 percent growth from last year’s busiest day, and marks the smallest growth prediction in four years. UPS will add more than 60,000 employees to help with the seasonal rush.

DHL International GmbH expects to ship 14.5 million packages across the globe on its busiest day, Monday, according to a company spokesman. The company predicts U.S. business will account for between 2.4 million and 2.5 million of those shipments.

The company declined to report 2006 figures.

The U.S. Postal Service expects nearly 1 billion pieces — including packages and those last-minute letters to Santa — to be mailed on Monday, its busiest mailing day of the year. USPS expects 275 million cards and letters to be tossed into a mailbox that day. Wednesday is expected to be the busiest delivery day for the USPS.

Randazzo’s enthusiasm is a plus around the holidays, where the day can extend for 12-hour stretches and the amount of packages soars.

But he brushed off any negatives.

“I don’t get tired from working,” Randazzo said. “It really energizes me to be here. I think I would be tired if I sat at home.”

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