Air Freight News

FedEx to pare Sunday deliveries again as e-commerce demand wanes

FedEx Corp. plans to scale back even more on Sunday package deliveries as the courier grapples with faltering e-commerce demand.

The pullback will reduce the availability of Sunday service to about 50% of the US population, according to an internal memo. FedEx had announced in July that it would slash coverage on that day to roughly 80% of US residents from 95%.

The company expects to halt the service in select areas beginning in mid-March, according to the unsigned Jan. 6 memo, which was sent to the contractors that make deliveries for its ground unit. FedEx will decide next month which markets will be affected.

The courier said in a separate statement Tuesday that Sunday deliveries would continue primarily in “densely populated areas with proven customer demand.”

“As we continue to adapt and streamline the FedEx global network to meet our customers’ needs in a rapidly shifting landscape, FedEx Ground is making further adjustments to better align our Sunday residential delivery operations with current customer demand,” the company said.

The move is the latest step in FedEx’s effort to reduce costs, improve efficiency and deal with a decline of package volume as people return to shopping at retail stores following a surge of online purchases during the pandemic. During the quarter than concluded at the end of November, package volume at the ground unit fell 9.1%. 

FedEx shares fell 1.4% at 12:22 p.m. in New York. The latest Sunday change was reported earlier by Insider.

Bloomberg
Bloomberg

{afn_job_title}

© Bloomberg
The author’s opinion are not necessarily the opinions of the American Journal of Transportation (AJOT).

Similar Stories

Wizz Air sees peak Pratt engine groundings in six to 12 months

Wizz Air Holdings Plc’s top executive expects the number of aircraft grounded due to flaws with Pratt & Whitney’s geared turbofan engines will take another six to 12 months to…

View Article
https://www.ajot.com/images/uploads/article/Port_of_Huntsville_airportjpg.jpg
The Port of Huntsville marks another year of growth in intermodal transportation
View Article
FTR Shippers Conditions Index declines but still positive in January

FTR’s January Shippers Conditions Index (SCI) fell 3 points in January to a reading of 3.4.

View Article
https://www.ajot.com/images/uploads/article/DHL_Aviation_WFS_in_France.jpg
DHL Aviation renews warehouse handling contract with WFS in France
View Article
Lufthansa, German union agree on ground crew wage deal: dpa-AFX

Deutsche Lufthansa AG and German labor union Verdi agreed on the main features of a wage deal for ground staff, ending a series of strikes that disrupted travel in recent…

View Article
China’s biggest airlines post loss on slow international return

China’s three biggest airline companies reported annual losses for 2023 as international traffic remained well below pre-pandemic levels.

View Article