Shipping companies need to cover their higher costs, but there’s a limit to how much they can pass on to customers.
As consumers favor services over buying goods, FedEx and other shippers are feeling the pinch.
The company’s CEO thinks it is a sign of an impending global recession. One analyst says some of the decrease in volume is “self-inflicted.”
Under pressure from the contractors who actually do a lot of the deliveries, the company will stop delivering on Sunday primarily in rural areas.
Companies could put a cap on the number of deliveries they accept, leaving the overflow to the postal service.
Retailers are increasing shipping fees while fielding more calls from customers, asking, “Where’s my package?”
As FedEx reports its quarterly figures, what may be in store for companies trying to fulfill the demand for e-commerce deliveries?
Recent problems at the USPS could lead to more businesses using private companies for shipping — and that could have consequences for workers.
The pandemic has caused another sharp decline in business.
FedEx reported weaker than expected earnings for the most recent quarter.
