FedEx Ground increases delivery schedule to six days a week

Company officials said that this move was made in response to a combination of –increasing e-commerce demand and record influx of volume expected this holiday season, and beyond.

Logistics in the News

Report: Amazon to roll out offerings to take market share from FedEx and UPS
Emerge names Crawford as president
December truck tonnage finishes a strong year in 2018, reports ATA
Despite sluggish December, IANA reports 2018 intermodal volumes post annual gains
FedEx Express announces plans to acquire Israel-based Flying Cargo Group
More Logistics News

Logistics Resource

New White Paper focuses on the ABC’s of Anti-Dumping/Countervailing Duties
While the U.S. government has always prioritized protection of U.S. companies against imports that are sold at below market prices, or unfairly subsidized, the Trump administration clearly intends to raise the bar with regard to trade policy enforcement.
All Resources
By ·

Earlier today, global transportation and logistics bellwether FedEx said that it is upping its FedEx Ground U.S. operations to six days a week from five.

Company officials said that this move was made in response to a combination of –increasing e-commerce demand and record influx of volume expected this holiday season, and beyond.

“FedEx anticipated early on that the growth of e-commerce would significantly increase demand throughout our network, and we underwent a transformation by opening new facilities and investing in highly-advanced technology and innovations that have resulted in the most automated network in the industry, delivering the speed and reliability our customers value highly,” said Raj Subramaniam, executive vice president, chief marketing and communications officer, FedEx Corp., in a statement. “These significant facility and automation investments have been taking place for many years, but are now largely complete. This expanded capacity and increased efficiency will create margin and profitability benefits at the same time that FedEx Ground capital investment will be decreasing.”

The FedEx executive also stated that the rise in demand for e-commerce goes beyond peak, observing it is a “year-round phenomenon” and prepared to meet that demand.

FedEx described the gains the company has seen for demand and volume as dramatic and consistent for more than a decade. As an example, it noted that the record day for the company in 2009 was 12 million shipments, whereas now it routinely handles more than 14 million shipments on a typical day.

What’s more, it explained that 2018 is projected to be a record volume year for the FedEx network, adding it plans to increase hours for some existing staffers and hire roughly 55,000 positions for the holiday season.  It also noted that FedEx Ground again plans to run six- and seven-day operations through the holiday season and also continue six-day operations throughout its U.S. network on a year-round basis.

Going back to 2005, FedEx has been actively involved in its network expansion initiative geared towards increasing daily package volume capacity, as well as to augment the its network speed and service capabilities. Examples of this include the opening of 15 new hubs comprised of advanced materials handling systems, as well as the addition of around 36 million square feet to its network, which includes the opening of nine new hubs and 58 automated stations. Investments in as automation, robotics and real-time route planning, sortation and delivery technology have all served as drivers of the expansion of the global FedEx network, it said.

“FedEx really has no choice to go to six days, because the Internet allows e-commerce activity on a 24x7 basis, which means orders pile up to be delivered on Tuesday in the FedEx Home Delivery world (they had traditionally delivered HD Tuesday to Saturday),” said Jerry Hempstead, president of Hempstead Consulting.  

He added that the move to delivery six days a week could serve as a prelude to a rate increase, noting that the FedEx could point to this 20% increase in its service to justify the higher increase.

About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

e-commerce · FedEx · FedEx Ground · parcel · All Topics
Latest Whitepaper
Intelligent Vision-based Sortation & Tracking Systems
Download this new "Making the Case" guide to learn how using intelligent, vision-based readers and sensors can capture the information you need to help address both external customer service expectations, and internal marching orders for efficiency.
Download Today!
From the January 2019 Logistics Management Magazine Issue
Seaports on West, East, and Gulf coasts are all poised to compete on one major imperative: investment in transformational technologies.
2019 Rate Outlook: Pressure Builds
Lift Trucks join the connected enterprise
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2019 Rate Outlook: Will this be the year rates skyrocket?
Join Logistics Management's Patrick Burnson as he hosts a panel of fuel, trade and logistics experts who share their insights on rate patterns across all major transport modes to help shippers prepare their freight transportation budget for the coming year.
Register Today!
2019 Rate Outlook: Pressure Builds
In 2019, the world economy will enter a third straight year of broad-based growth, but many...
2019 Transportation Management Systems (TMS) Market Update: Keeping pace with the times
The transportation management systems market is growing right along with the number of challenges...

The Logistics News that Shaped 2018
Every year at this time, group news editor Jeff Berman combs through the mountain of news that was...
Land O’Lakes lock in Texas-based capacity
Faced with the challenge of securing capacity in specific lanes, the iconic company broke with...