FedEx says it can handle holiday shipping rush
FedEx Express will make deliveries in General Motors' all-electric BrightDrop vehicles
Major retailers, shipping companies start holiday hiring process
Ahead of the holiday rush, the search for seasonal workers could see some employers competing for talent.
FedEx is assuring customers that its shipping network and team of more than 700,000 employees are ready to handle the upcoming holiday shipping rush.
"We’re all in for the holidays," FedEx Chief Customer Care Officer Brie Carere said in a statement. "We’ve been working with our customers throughout the year to plan for this peak, and we’ve set our bar even higher with an unmatched network and committed team ready to deliver an outstanding experience."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FDX | FEDEX CORP. | 266.13 | -5.54 | -2.04% |
FedEx Ground will deliver residential packages seven days a week, including service to nearly 80% of the U.S. population on Sundays. More than 97% of the company's daily package volume is handled by FedEx Ground's network of more than 160 fully automated sorting and distribution stations.
Meanwhile, FedEx's Freight Direct service will deliver large and bulky items inside customers' homes, reaching 90% of the U.S. population.
Side view of Fedex Ground shipping truck in San Ramon, California, March 3, 2022. (Smith Collection/Gado/Getty Images) | Getty Images
FedEx Express will make deliveries in General Motors' all-electric BrightDrop vehicles.
HOLIDAY RETURN POLICIES: WHAT TO KNOW
Starting this holiday season, FedEx is introducing a picture proof of delivery service to provide customers with visual confirmation that their packages have arrived. The service is available for all residential, non-signature package deliveries without requiring an account or login.
Starting this holiday season, FedEx is introducing a picture proof of delivery service to provide customers with visual confirmation that their packages have arrived. (Photo courtesy of FedEx) (FedEx)
Paperless returns and package pickup and drop-off services are now available in more than 10,000 staffed U.S. retail locations. FedEx Office will have more than 11,400 devices and workstations to process shipments in stores, including 800 locations with self-service shipping stations.
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FedEx's efforts come after the company told contractors in an Oct. 7 memo that it would make downward adjustments to its volume forecasts. More than a dozen Ground delivery providers told Reuters that their volumes are down anywhere from 5% to 15% so far this year compared to the same period a year ago.
In the first quarter of 2023, FedEx reported "global volume softness," prompting it to launch a series of cost-cutting measures including closing 90 FedEx Office stores and five corporate offices, putting off new hiring, operating fewer flights and scrapping its full-year earnings forecast. Starting Jan. 2, FedEx Express, Ground and Home Delivery rates will increase by an average of 6.9%, while FedEx Freight rates will increase by an average of 6.9% to 7.9%.
In fiscal 2023, the company expects to generate total cost savings between $2.2 billion and 2.7 billion. For the second quarter of 2023, FedEx is anticipating revenue between $23.5 billion and $24 billion and earnings per diluted share of $2.65 or greater.
FedEx shares are down approximately 40% year to date.