Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Sarah Grillo/Axios

This year, delivery companies are facing two heavy lifts at once: meeting unprecedented demand for holiday shipping while orchestrating complex logistics for coronavirus vaccine distribution.

Why it matters: Even with big investments in technology, infrastructure and new hires, the networks of experienced shipping giants like UPS and FedEx can only handle so much capacity — and 2020 is testing those limits.

  • If their systems get overloaded, something has to give, and it's likely to be that last-minute gift you ordered.
  • "Customers need to realize that [companies] are required to — and should — give priority to the vaccine over your Christmas gift because there's a life being lost every minute if that vaccine is delayed," said Satish Jindel, president of ShipMatrix, a logistics data and consulting firm.
  • FedEx's Regional President of the Americas, Richard W. Smith, tells Axios via email that delivering the vaccine is "among the most important work in the history of our company."

Where it stands: So far, the companies' advance preparation this year is paying off.

  • On-time deliveries are running well ahead of last year's snowy holiday season, per ShipMatrix, despite the pandemic challenges.
  • For the two weeks of Nov. 22 through Dec. 5, including Thanksgiving and Cyber Monday, UPS achieved 96% on-time delivery; FedEx was at 95%, and the U.S. Postal Service was at roughly 93%.
  • “UPS is running one of the most successful peak holiday shipping seasons ever,” the company's new CEO Carol Tomé said this week in a statement.

Zoom in: A big reason for UPS' success so far is that it has been working closely with customers to align their shipping needs with its network capacity — and sticking to those plans.

  • When e-commerce surged earlier this year, UPS added "peak" surcharges for some big customers like Amazon and Best Buy.
  • More recently, it imposed shipping limitations on big retailers like Macy's and Gap to prevent them from overloading UPS facilities.

What's next: It all gets more complicated as soon as the vaccines are ready for shipping. Through Operation Warp Speed, UPS is providing logistics support for eight of the 10 leading vaccines currently in clinical trials.

  • The company has already mapped out supply routes for each of the vaccines, and reserved capacity in its air network, operating hubs and ground operations.
  • It also added new technology like proprietary sensor tags that track and monitor the status — including temperature — of every package in its network.
  • UPS will monitor all vaccine shipments from a new 24/7 command center which collects data and monitors temperature at its customers' sites.
  • "We started working on this when the vaccine companies started working on their clinical trials," Kate Gutmann, senior vice president of UPS' Healthcare and Life Sciences Unit, tells Axios in an interview.

How it works: In the case of Pfizer and BioNTech’s vaccine, kits containing syringes and PPE are already being delivered to dosing sites now. The vaccine comes next — maintained at super-cold temperatures — followed by extra dry ice shipments to replenish dosing sites.

  • UPS will deliver vaccines in the eastern half of the U.S. and FedEx will handle the west.
  • UPS created a vast "freezer farm" for -80°C storage at its logistics hub in Louisville, where it will also produce more than 24,000 pounds of dry ice per day.
  • Each day UPS will deliver a 40-pound box of dry ice to all Pfizer dosing sites that lack their own freezer capacity.

The bottom line: The pandemic has shipping companies performing a high-stakes juggling act that's testing their resilience.

Go deeper

Jan 29, 2021 - Health

J&J says its one-shot vaccine is 66% effective against moderate to severe COVID

Photo: Thiago Prudêncio/SOPA Images/LightRocket via Getty Images

Johnson & Johnson announced Friday that its single-shot coronavirus vaccine was 66% effective in protecting against moderate to severe COVID-19 disease in Phase 3 trials, which was comprised of nearly 44,000 participants across eight countries.

Between the lines: The vaccine was 72% effective in the U.S., but only 57% effective in South Africa, where a more contagious variant has been spreading. It prevented 85% of severe infections and 100% of hospitalizations and deaths, according to the company.

Merrick Garland: Domestic terror is "still with us"

Photo: Kevin Dietsch/UPI/Bloomberg via Getty Images

In his first major speech, Attorney General Merrick Garland warned the nation Monday to remain vigilant against the rising threat of domestic extremism.

Why it matters: Domestic terrorism poses an "elevated threat" to the nation this year, according to U.S. intelligence. Garland has already pledged to crack down on violence linked to white supremacists and right-wing militia groups.

You’ve caught up. Now what?

Sign up for Mike Allen’s daily Axios AM and PM newsletters to get smarter, faster on the news that matters.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!