FedEx Ground, which handles the bulk of the company’s ecommerce deliveries in the United States, plans to pare parcel volume forecasts.

FedEx Corp. plans to pare parcel volume forecasts at its key ground unit as its customers plan to ship fewer packages during the holiday season.

FedEx Ground will update its expectations in roughly two weeks. Its update will account for softening economic conditions anticipated to erode shipping volume, Reuters reported, citing an internal memo. The FedEx Ground division handles the bulk of the company’s ecommerce deliveries in the United States,

It’s another sign of weakening demand after FedEx shocked investors last month with quarterly earnings that fell far short of Wall Street’s expectations. The company also withdrew its full-year financial forecast and said it would park aircraft, close facilities and take other steps to deliver as much as $2.7 billion in savings this fiscal year.

“We are constantly collaborating with customers on their projected shipping needs and making adjustments as necessary to ensure our network is prepared to deliver outstanding service for this year’s Peak season and beyond,” FedEx said in a statement. The company didn’t comment on the memo in the Reuters report.

Previous FedEx changes and adjustments

This comes months after FedEx said it will scale back Sunday delivery service in rural and lightly populated area of the United States, the latest evidence that the ecommerce surge spurred by COVID-19 is ending.


“As economic conditions have shifted, we are making operational adjustments to suspend Sunday delivery operations in certain low-density, rural markets,” FedEx said at the time.

More recently, FedEx, United Parcel Service Inc. (UPS) and the United States Postal Service (USPS) closed facilities and announced service delays in Florida due to Hurricane Ian.

FedEx had issued a service alert saying customers should expect delays and disruptions for inbound and outbound shipments across portions of impacted areas.”

In an email, a FedEx spokesperson said the carrier had “implemented contingency plans to help restore service as soon as possible in those areas where it has been disrupted.” The spokesperson had also urged customers to check the FedEx website for the latest service information and to check the status of their shipments.


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