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Goodbye USPS, Hello FedEx Changes

May 22, 2024 · 3 minutes read

Without wishing the summer way, FedEx's contract with USPS will be completed before we know it. While September marks the final handover of duties as USPS's primary air cargo provider from FedEx to UPS, we still don't know exactly how FedEx plans to alter its strategy for a new reality.

At the recent BofA Securities 31st Annual Transportation, Airlines, and Industrials Conference, FedEx gave attendees a glimpse of its plans. We'll share what we know and help you understand how you can continue to save money— even as the carrier makes changes.

FedEx CFO hints at a new timetable post-USPS

In its report for the quarter ending March 31, USPS announced a reduction in year-over-year spending from $773 million to $574 million. The postal service attributes that drop to a "shift of package volume from air to highway transportation when more economical and allowing for improved reliability and service performance."

As things wind down with USPS, FedEx is free to shift its strategy to maximize income and efficiency at a time that is most beneficial to the carrier. FedEx Executive Vice President and CFO John Dietrich told those at the BofA conference, "We are going to continue to have a daytime operation, and we've some great customers on that."

But change is inevitable.

He continued, "will we do as much as we are doing with the US Postal Service? Probably not. But we are going to continue to rationalize the network, and there's a lot of great work going on in that area."

While the loss of USPS represents a significant loss of income for the carrier, Dietrich says FedEx is now free to "aggressively go after the network changes, not only the changes, but also the opportunities that it creates to be more flexible with our network." Those opportunities include Network 2.0, the DRIVE initiative, and One FedEx.

How can you maximize money back amid carrier changes?

Regarding daytime operations, Dietrich says FedEx "will not be as wedded to" the same timetable going forward, enabling them to "better adapt to a changing market." So, what does that mean for you?

All change comes with growing pains. Dietrich himself alluded to those adaptations, saying, "when you have such a large network and want to continue to serve your customers, which we do, it takes time to adapt to that environment." Some changes are just more costly than others.

With the introduction of FedEx's new schedule, it's natural to anticipate some adjustments. However, with ShipRx parcel audits, you can rest assured that potential disruptions won't impact your expenses. Our comprehensive audits automatically check over 40 factors on every parcel you send, including delivery time, surcharges, and pricing, and are designed with your financial interests in mind— not the carrier's. If there are any errors, we'll handle the refund process directly with FedEx on your behalf.

It's free to get started, and most of our customers see between 2-3% refunds annually. Schedule your savings analysis today and see refunds as early as your next invoice.

Todd ShipRx Partner