Expedite Shipping

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How is it that expedite shipping exists (next-day delivery/ international expedite/ etc) in relationship to standard shipping? Its not like companies benefit or profit from the time the package is in transit. I understand its a “premium” feature but why isnt it ideal to have packages delivered in the shortest/ least time-consuming route, and if so, why arent these shorter/ less time-consuming routes the standard?

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Anonymous 0 Comments

Optimising for cost and optimising for time is not always the same. For example if a package sorting center end up with a pile of packages which are a bit larger then what fits in one container they can either send two containers and double their cost. Or they can withhold some packages until next day when they will have enough packages to completely fill a second container. Alternatively they might put the remaining packages on a different route to a nearby sorting facility if the container going there is not yet full. When they optimise for cost they do the second or third option even though this delay some of the packages a day. The packages sent as expedited shipping though is sent with the first container.

There are also different shipping methods. Most of the packages today are sent with ships and trains. However trucks can be faster and airplanes are even faster yet. And even for trucks there are cheaper options where the driver take the mandatory rest periods so they can drive the same way all week, and then there are more expensive options where the driver do overtime and have to have a longer rest period at the end of the drive or even have two drivers on the same truck so one can rest while the other drive.

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