FedEx taking measures to iron out peak season spikes

FedEx has said it will implement surcharges and other measures to manage major volume spikes over the coming peak season after a 31% year-on-year increase in parcel volumes to 31st August.

The surcharges are to manage demand and mitigate the costs of what promises to be an unusually big peak season thanks to the rapid growth of e-commerce. The logistics giant is joining UPS in limiting the number of trailers it will make available to retailers’ distribution centres to transport parcels into its network. With the two biggest players doing this, this could mean a lot of extra capacity for smaller delivery companies to meet excess demand.

FedEx is working with its e-commerce customers to look at ways of dealing with demand spikes in the coming months. Brie Carere, FedEx’s executive vice president, chief marketing and communications officer, noted same-day activity is just a small part of the company’s business. “Same day from an e-commerce perspective remains a very tiny percentage of the market,” Carere said in the company’s fiscal first-quarter earnings report for the three months ended Aug. 31. “So, we continue to be focused on the remainder of the market.”