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IPFS News Link • Business/ Commerce

FedEx Ground To Drop Sunday Deliveries In Certain Markets

• Zero Hedge

By Mark Solomon of FreightWaves

FedEx's ground-delivery unit said late Thursday that it will suspend Sunday residential deliveries in certain "lower-population" markets starting the week of Aug. 15, a nod to concerns voiced by many of its independent delivery contractors that the service is a money-loser for the unit and is damaging contractor margins in the process.

In an email obtained by FreightWaves, FedEx Ground said that Sunday operations have "posed various challenges" to the provider network, which is composed of about 6,000 contractors employing many thousands of drivers. The change is an opportunity for the unit and the provider network to "recalibrate operations for current market conditions," FedEx Ground said.