The U.S. Postal Service picked UPS to replace FedEx as its primary partner for moving parcels by air, but analysts say FedEx actually comes out ahead by losing the business.
UPS will take over flying mail and parcels for the U.S. Postal Service later this year. FedEx is relinquishing the contract but says the move will make it more profitable.
FedEx and UPS have recently announced job reductions as part of ongoing efforts to streamline operations and boost profits.
The FedEx pilots union has a new chairman who is more aligned with the majority of the Master Executive Council, which wants to press FedEx harder on a new contract.
FedEx Express has parked more freighters, reduced aircraft capex and is integrating its daytime freighter network with the Freight segment’s less-than-truckload operation to provide linehaul connecting the U.S. and Europe to boost efficiency.
FedEx said strong cost controls drove its fiscal third-quarter results; its shares soared in late trading.
Satish Jindel, president of ShipMatrix, shares his thoughts on the ways parcel carriers should modernize their networks.
The FedEx pilots union is telling members that the company’s slow response to its demands is triggering tougher tactics. FedEx says there is so much turmoil in the union that it doesn’t know what demands to take seriously.
Bad blood between factions in the FedEx pilots’ union is making it difficult to present a unified position in collective bargaining with the company. Some hard-liners are turning against leadership and pushing for a strike to get better terms.
Pilots at FedEx say talks on a new contract are at a stalemate and have asked the National Mediation Board to send the dispute to arbitration.
The U.S. Postal Service contract is an albatross around FedEx’s neck. The company needs to fly less during the daytime and consolidate more express and ground parcel shipments, Barclays says.
FedEx has more cargo jets than it needs for its express package network. Some of those planes will now be used to try and capture a larger share of the general cargo market. In doing so, FedEx will go head to head with all-cargo carriers like Atlas Air, Cathay Pacific and Nippon Cargo Airlines.
FedEx Express faces more headwinds in its effort to improve profitability as the U.S. Postal Service prepares to drop air routes from contracted service.
FedEx Express wants to compensate for a surplus of pilots by lowering guaranteed pay and offering severance packages once a new labor contract is reached. Meanwhile, mechanics are agitating to unionize.
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FedEx is following its rivals’ leads with a no-box, no-label returns program.
A former contractor alleges that it was fraudulently induced to sign a contract with FedEx Ground.
Can package sizing be improved? It’s been a long, slow process.
Teamsters union leadership may be willing to accept lost rank-and-file jobs in return for increases in new positions, a labor expert says.
A source wonders if UPS’ new offering is a reconstituted version of an earlier stab at quick delivery.
