- 13 September 2018
- Transport / Logistics Services
US operations of FedEx Ground are now to be working six days a week in response to growing e-commerce demand that has repeatedly caused records to be broken during the autumn / winter peak season. The new six-day week is to begin in the coming weeks.
“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. “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 US logistics and parcels operator has more than 425,000 team members standing ready to deliver for customers throughout the coming peak season, who also aim to provide great service year round.
Demand and volume at FedEx Ground has been dramatic and consistent for more than a decade. 10 years ago the peak volume day was 12 million shipments. Today the parcels company handles more than 14 million shipments on an average day.
To deal with the coming peak season, FedEx Ground plans to hire for more than 55,000 temporary positions and will increase the hours for some existing employees.
Throughout the peak season FedEx Ground is to run six- and seven day operations, but running into 2019 will move from five days a week to 6 days a week during off-peak times.
“The rise in demand for e-commerce goes beyond peak. It’s a year-round phenomenon and we are ready to meet that demand,” said Subramaniam. “FedEx Ground has operated six- and seven-day operations during the holidays for several years as e-commerce has grown, and thanks to strategic investments in our network, we are now well-positioned to operate six days a week in the U.S. all year to best serve the rapidly growing demand.”