On June 24, FedEx released their fourth quarter and full-year report, which noted that the carrier is “consistently ranked among the world’s most admired and trusted employers.” They go on to say that “FedEx inspires its 570,000 team members to remain focused on safety, the highest ethical and professional standards and the needs of their customers and communities.” That’s not just an empty claim. The carrier is putting its money where its mouth is, recently announcing a plan to spend over $100 million on delivery van safety.
Bloomberg shared a statement from FedEx, which explains, “As e-commerce continues to drive substantial growth in our industry, the number of resources needed to meet this demand is increasing, which requires even greater focus on motor vehicle safety.” The $100 million budget is earmarked for FedEx Ground contractors as they make improvements to their fleet of approximately 72,000 delivery vans. The budget of $1,500 per van covers the installation of cameras and sensors designed to warn drivers of obstacles in blind spots and when backing up. In addition to the sonar and camera systems, the vehicles will also be equipped with speed limiters, lane departure warning systems, and technology to avoid forward collisions.
As the saying goes, sometimes you have to spend money to make it– and the timing couldn’t be better. On September 20, FedEx stock closed at a more than six-month low. This comes just one day before the carrier is expected to report fiscal first-quarter earnings of $5.00 per share. Can increased safety measures get the company back on track for increased earnings? Despite contractors working for independent companies, large accident claims are covered by the FedEx Ground unit. The carrier hopes that the new camera systems will lower costs by providing proof when false claims are made.
In a note to clients, Cowen equity analyst Helane Becker wrote, “August quarter remained strong, although we are seeing some delays in shipments, which we expect management to address.” As a FedEx customer, you can wait for management to address the delays, or you can take action now.
FedEx is spending money to increase safe deliveries and decrease legal fees paid for false claims, but you should know that they’ll also pay when they fail to deliver safely and on time. When FedEx doesn’t uphold its service agreement, you’re entitled to a refund.
Manually tracking each shipment is time-consuming, but ShipRx offers a parcel audit service that performs over 40 different checks to discover service failures by FedEx. There’s no upfront payment or credit card required to get started– we only get paid when we discover refunds on your behalf. Every year, billions of dollars in refunds go unclaimed. Most of our clients are able to recover 1-5% of their yearly shipping costs due to service failures, and you’ll never know what you’re owed until you sign up for an audit.
It takes less than five minutes to get started on a parcel audit, so get in touch with the shipping experts at ShipRx and start saving money now.
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