12/8/2022 0 Comments Fedex delivery by end of day meansUPS leadership stood by company forecasts in analyst meetings in late September. All DHL Express services offer express delivery by the end of the next possible working day. Walmart, one of FedEx's largest customers, in late July warned that its shoppers were cutting back purchases of nice-to-have goods as prices for necessities surged.įedEx's more profitable rival United Parcel Service (UPS.N) declined comment for this story, citing the quiet period ahead of its earnings report on Oct. Record inflation has further dampened demand for goods ranging from sofas to sneakers as higher costs for housing, food and fuel drain disposable income. consumers shed protective masks and shifted spending back to brick-and-mortar stores, travel and entertainment. The pandemic's online shopping boom has been unwinding in the months since U.S. Investors and analysts were skeptical, pinning much of the blame on the company's slow response to softening demand. last-mile delivery industry is starting to grapple with profit-sapping excess capacity.įedEx leadership blamed the company's recent financial setbacks on economic conditions that rapidly deteriorated in late August. Many said the company's holiday forecast was overly optimistic for the second year in a row.įedEx's Ground contractors have been pushing back against company policies and contract changes that have eroded their margins. Over the last two weeks, more than a dozen Ground delivery providers told Reuters that their volumes are down anywhere from 5% to 15% so far this year versus the same time in 2021. It delivers online orders for Walmart (WMT.N), Chewy (CHWY.N) and other retailers. The company said it is working with customers to ensure it is prepared for the peak holiday delivery season.įedEx Ground is the company's second-largest and fastest-growing division. "These changes will reflect the latest information from customers about how they anticipate current conditions are likely to decrease their volumes this holiday season," said Melander, who added that FedEx will further revise volume forecasts as warranted leading up to the start of the Christmas package delivery season.įedEx in a statement declined to elaborate on its message.
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