FedEx announced last week that beginning August 15, they’ll suspend Sunday service to 15% of its customers. You may not even notice the change if you live in a city or a busy suburb. Sunday service there will remain unchanged. Rural customers, however, will be left without the Sunday deliveries they’ve come to expect.
Why is FedEx cutting service? Is there anything you can do about it if you’re affected? Today, we’re talking about what prompted the change and a simple (and free) step you can take if you’re affected by the end of Sunday service.
Before we talk about why FedEx is cutting back on Sunday deliveries, it’s good to remember that Sunday deliveries haven’t 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.
Here’s the January 2020 announcement by FedEx’s President and Chief Executive Officer Raj Subramaniam, “Now 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.” While e-commerce was everyone’s 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 don’t run FedEx Ground deliveries. Instead, CSPs deliver the majority of e-commerce shipments for FedEx Ground. Because the CSPs own their route, they’re 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.
Just because this move makes sense for FedEx doesn’t mean it makes sense for your business. After all, you’re paying the fuel surcharges.
Did you know that you don’t have to wait for the end of your contract to renegotiate? If you haven’t looked at your parcel contract recently, let FedEx’s change in Sunday deliveries be the harbinger of change for your bottom line.
The team at ShipRx has written contracts for the carriers, and we’ve helped business owners just like you evaluate your contracts and lower shipping costs. We’re so confident we can help you save money that we’ll review your current contract for free and coach you through how to save money. And if you’ve already got a great deal? We’ll 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.
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