This isn’t an imagined scenario— it’s happening at FedEx right now. In today’s blog post, we’ll find out why FedEx is encouraging its pilots to find work elsewhere and how you can use this to your advantage in parcel rate negotiations.

Is FedEx kicking its pilots to the curb?

In August, the Wall Street Journal reported a surplus of 700 pilots at FedEx, citing declining parcel volume and the combination of Express and Ground units.

As of now, there is no forced downsizing happening at FedEx. Instead, and in response to pilot complaints about only flying the minimum number of contracted hours, the carrier released a statement urging its pilots to switch from flying cargo with FedEx to flying passengers with American Airlines subsidiary PSA Airlines. Pat DiMento, FedEx’s vice president of flight operations and training, claims this new career opportunity may be the answer to “a slowing economy, large customer contract negotiations, and slowing pilot retirements with an already overmanned crew force” now that the carrier is seeing “decreased revenues and volumes similar to 2019 levels.”

What’s in it for the pilots?

The airline offers an expedited interview process for a captain position, a $250,000 signing bonus, years of service credit for Part 121 flying, and a guaranteed flow to American Airlines.

Pat DiMento wrote in the statement, published by aviation blogger @JonNYC on X, “While I understand this is not something that will appeal to every pilot, for those of you who are frustrated with current flight hours, career progression, or have just been on on the fence about available options, you may consider this unique opportunity enough of an incentive to make a move.”

Are your shipments safe with FedEx?

FedEx isn’t alone in facing low demands with increased costs. After averting the Teamsters strike this summer, UPS offered early retirement to eligible pilots. Nearly 200 accepted the offer.

As the carriers look out for the bottom line, who’s looking out for yours? When you choose ShipRx to assist with parcel rate negotiations, we’re with you every step of the way— from reviewing your contract to pinpoint savings opportunities to combining benchmarking data with a detailed analysis of your shipping operations to determine the lowest possible rates you should be paying. Our proven strategy often saves our customers 20-30% on annual shipping costs.

FedEx and UPS will do whatever it takes to stay in business and remain profitable. With lower parcel demand, the power is shifting from the carriers to the customers, and there’s never been a better time to negotiate your parcel contract.

Get in touch with ShipRx today to schedule your free savings analysis. Carriers are changing to reflect the current parcel climate; take action now so you don’t get left behind.

Todd Partner