FedEx, UPS Ride Hottest Run in Years Toward Record Holiday Rush
- Retailers face higher costs with couriers adding seasonal fees
- Shipping capacity nears test as peak demand looms at year-end
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Riding high from record package deliveries amid the coronavirus pandemic, United Parcel Service Inc. and FedEx Corp. are moving on to their next challenge: proving they can boost profit in the approaching holiday onslaught.
FedEx followed UPS and the U.S. Postal Service this week by setting aggressive peak-season fees, flexing increased pricing power with retailers ahead of what’s expected to be an unprecedented year-end surge of packages. The couriers also will vie with Amazon.com Inc. to hire hundreds of thousands of seasonal drivers as the e-commerce giant ramps up its distribution network.