Say Goodbye to Sundays?
Why is FedEx cutting service? Is there anything you can do about it if youâre affected? Today, weâre talking about what prompted the change and a simple (and free) step you can take if youâre affected by the end of Sunday service.
Why is FedEx cutting Sunday service to rural homes?
Before we talk about why FedEx is cutting back on Sunday deliveries, itâs good to remember that Sunday deliveries havenât always been a guarantee. In fact, until the boom of e-commerce at the beginning of 2020, many US homes did not receive Sunday packages.Hereâs the January 2020 announcement by FedExâs President and Chief Executive Officer Raj Subramaniam, âNow that FedEx Ground delivers FedEx Home Delivery packages on Sundays to most US residences, we have increased our speed advantage significantly to kick off the new year⊠As more customers expect weekend delivery, this enhancement to our network means that every day is now a delivery day at FedEx.â While e-commerce was everyoneâs preferred method of shopping, this new strategy of Sunday deliveries for almost everyone in the US market worked.
Now, things have changed. With the cooling of e-commerce and the rise in fuel costs, the contracted service providers (CSP) have a valid cause for concern. FedEx employees themselves donât run FedEx Ground deliveries. Instead, CSPs deliver the majority of e-commerce shipments for FedEx Ground. Because the CSPs own their route, theyâre directly impacted by a decline in the number of packages and a rise in fuel costs.
FedEx needed to make decisions to boost the efficiency of its Ground unit while appeasing the CSPs. Cutting Sunday deliveries from 95% of the US market to 80% accomplished both tasks.
What can you do about this service change?
Just because this move makes sense for FedEx doesnât mean it makes sense for your business. After all, youâre paying the fuel surcharges.Did you know that you donât have to wait for the end of your contract to renegotiate? If you havenât looked at your parcel contract recently, let FedExâs change in Sunday deliveries be the harbinger of change for your bottom line.
The team at ShipRx has written contracts for the carriers, and weâve helped business owners just like you evaluate your contracts and lower shipping costs. Weâre so confident we can help you save money that weâll review your current contract for free and coach you through how to save money. And if youâve already got a great deal? Weâll tell you!
We only get paid once you start saving money, so we guarantee 100% honesty with you every time. Get in touch today to begin the process of renegotiating your contract so you can start saving money now.