The postal service is completing the installation of the parcel sorting machines

The US Postal Service announced Monday that it has completed a nearly two-year project to install 249 package processing machines nationwide.

The new machines, 137 of which have been installed in 2022 so far, will increase the postal service’s daily peak-season parcel processing capacity to 60 million pieces. That compares to 53 million units during its peak in 2021, the agency said.

The postal service’s move, along with the additional capacity that FedEx Corp., UPS Inc. and the myriad regional delivery services are bringing online, means that consultancy ShipMatrix Inc. estimates delivery networks will have sufficient capacity to deliver 118 million packages per peak day to manage something. The postal service processed 38 million packages daily during the peak year of 2020 and 34 million in the 2021 cycle.

ShipMatrix expects holiday demand to be around 90 million packages per day in 2022. Unless demand unexpectedly picks up over the holiday season, airlines will be hit with a huge slack in capacity, which will drive up their operating costs and impact profits, the company said.

The consultancy expects a relatively subdued peak shipping season as more consumers shop in stores and high inflation and recession worries generally restrain consumer spending.

The Postal Service began installation in early 2021 as part of its 10-year “Delivering for America” ‚Äč‚Äčmodernization initiative. The agency will spend approximately $40 billion on new facilities and technology as part of the effort.

The last five package sorters were installed in Lafayette, Indiana; Orlando Fla.; Lake Havasu City, Arizona; Erlangen, Kentucky; and Lynchburg, Virginia.

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