FedEx Expects Lower Holiday Season Ground Shipping Volume
FedEx's e-commerce delivery division announced last week that it expects lower volume forecasts as customers ship fewer packages during the holiday season.
Reuters obtained an internal memo to 6,000 independent contractors who handle the delivery and trucking for FedEx Ground in the U.S., which says the company expects" downward adjustments to volume forecasts.
"These changes will reflect the latest information from customers about how they anticipate current conditions are likely to decrease their volumes this holiday season," FedEx Ground senior vice president Paul Melander said in the memo.
According to Reuters, more than a dozen Ground delivery providers said that their volumes have decreased by 5% to 15% this year compared to the same time period in 2021.
This comes shortly after USPS just released peak season price increases to accommodate for a rush of holiday-season postage.
A combination of relaxed COVID policies allowing for increasing in-person shopping, as well as inflation causing some shoppers to balk at prices, has contributed to lower shipping volume.
In response to Reuters' reporting, UPS declined to comment, instead standing by its forecasts released in late September.