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FedEx delivery network is 'on brink of COLLAPSE' because rising costs have pushed contractors to brink of bankruptcy, owner of delivery truck fleet warns
Daily Mail ^ | 9/3/22

Posted on 09/05/2022 9:47:29 AM PDT by EBH

FedEx Ground's delivery system is at risk of complete collapse as the local contractors it relies upon face rising costs and without any sign that their compensation will go up any time soon.

The FedEx Ground network relies upon local delivery companies to make the package and parcel dropoffs on behalf of the $54 billion multinational conglomerate.

But now one of the largest delivery contractors is warning that the entire system is on the brink of falling apart with local workers unable to absorb any more rising costs.

The FedEx Ground network is in far more peril than what anyone realizes. If Wall Street analysts, if FedEx corporate, and FedEx ground understood the degree to which the network is in danger, there would be widespread panic,' said Spencer Patton, President of Route Consultant.

FedEx Ground works by utilizing the services of around 6,000 small businesses that are under contract with the company in order to make doorstep deliveries.

Patton, who controls a fleet of 275 delivery trucks and has 225 employees across 10 states on his books is looking for a raise of 50-cent per stop for delivery contractors and a 20-cent increase for long-haul trucking contractors by the end of November 25, the start of the holiday shipping season.

Patton was hoping to negotiate directly with FedEx Ground and had set up a 10-member committee in the hope of focusing their attention.

Patton insists that he is not attempting to set up a union - despite the setup looking remarkably similar.

'FedEx Ground has no network without contractors. And we have no network without FedEx Ground. So we are inextricably linked here together in our mutual destiny,' Patton told Insider.

(Excerpt) Read more at dailymail.co.uk ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: contractors; economy; fedex; inflation; stockmarket
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1 posted on 09/05/2022 9:47:29 AM PDT by EBH
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To: EBH

Several independent trucks delivering FEDEX in my area, they have their own truck and don’t wear FEDEX labeled clothes.


2 posted on 09/05/2022 9:50:56 AM PDT by The Louiswu (If your child requires validation from Chuck E. Cheese you have failed as a parent. )
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To: EBH

The best thing I ever liked about FedEx was that coconut that comforted one of their stranded supervisors...


3 posted on 09/05/2022 9:53:40 AM PDT by SuperLuminal
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To: EBH
the local contractors it relies upon

I'm surprised the People's Republic of Californistan allows that.

4 posted on 09/05/2022 9:54:09 AM PDT by Jeff Chandler (THE ISSUE IS NEVER THE ISSUE. THE REVOLUTION IS THE ISSUE.)
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To: SuperLuminal

I thought it was a volleyball.


5 posted on 09/05/2022 9:54:28 AM PDT by dfwgator (Endut! Hoch Hech!)
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To: EBH

I’ve noticed their delivery reliability has gone to pot in the last six months or so. It used to be if they gave a delivery date, you could pretty much depend on it being correct, sometimes there would be a one-day delay, but that was uncommon. Now it seems to be more the rule than the exception that FedEx deliveries are going to be delayed at least once, and sometimes two or three times. In fact, I can’t remember the last time I received a FedEx package on the first delivery date I was given.


6 posted on 09/05/2022 9:56:56 AM PDT by apillar
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To: EBH
Amazon might be in the same boat as most of their "last mile" deliveries are farmed out to franchisers (privately owned). Those franchises are the ones that drive all those Amazon vans you see all over the place.

Not sure about UPS.

7 posted on 09/05/2022 9:57:17 AM PDT by SamAdams76 (4,022,059 users on Truth Social)
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To: dfwgator

Its name was Wilson.


8 posted on 09/05/2022 9:59:21 AM PDT by Clioman
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To: EBH
I certainly hope that FEDEX holds the line on these outrageous demands that the peasant drivers are trying to extract from it.

After all, FEDEX owes its first and only allegiance to its shareholders and the profits must remain high to keep the ROI at the appropriate level.

9 posted on 09/05/2022 10:04:35 AM PDT by who_would_fardels_bear (This is not a tagline.)
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To: EBH
When Joe Biden more than doubles the cost of fuel, there are painful consequences. But I wonder where Fedex campaign contributions were directed?

Of course the Government hates Fedex and UPS because they compete with the socialist delivery service.

10 posted on 09/05/2022 10:05:49 AM PDT by Governor Dinwiddie (LORD, grant thy people grace to withstand the temptations of the world, the flesh, and the devil.)
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To: SamAdams76

“franchisers”.

They are being sued for treating their Delivery Service Partners like franchisers.


11 posted on 09/05/2022 10:05:58 AM PDT by TexasGator
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To: EBH

My stepson drove for one of these independent firms delivering for fedex. It started off as a pretty fair deal and progressively turned into a bad deal. He got so much money eaxh day to do am 8 hour route then they kept adding more and more to where it took him over 10 hours to do the route.....oh yeah they made him a manager so he was off the clock. He had to quit


12 posted on 09/05/2022 10:06:13 AM PDT by BRL
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To: EBH

Was until FJB doubled fuel prices ..........


13 posted on 09/05/2022 10:07:29 AM PDT by njslim
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To: EBH

If you live in or have a business in the counties NW, N, NE of gay Frisco, you could in one day get orders from Amazon, delivered by Amazon, one of 3 independents, UPS and/or USPS, and FEDex.

The semi joke on our culdesac is that UPS has become the fastest and cheapest trick delivery on the street. This past week before the holiday, they even have had runners on their trucks to take packages from the trucks to the front door.

Package Runners are normally used during Thanksgiving through Christmas by UPS.

Last week, we had several packages delivered by USPS.


14 posted on 09/05/2022 10:08:55 AM PDT by Grampa Dave (Anyone, who can make you believe in absurdities, can make you commit atrocities.!" ~ (Voltaire)!!)
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To: who_would_fardels_bear
After all, FEDEX owes its first and only allegiance to its shareholders owners and the profits must remain high to keep the ROI at the appropriate level.

fixed.

15 posted on 09/05/2022 10:09:20 AM PDT by TexasGator
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To: EBH

A close family member works for the postal service.

He tells us that, every day, at the hub distribution center he works at, that UPS and Fed Ex trucks deliver packages, for the postal service to do the actual delivery.

It sounds like companies such as UPS and Fed Ex use others to do their actual deliveries in many cases.


16 posted on 09/05/2022 10:11:27 AM PDT by Dilbert San Diego
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To: Clioman

Better than Spalding.


17 posted on 09/05/2022 10:14:20 AM PDT by eyedigress (Trump is my President!)
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To: EBH

Fedex SUCKS! Over the last year they have screwed up every delivery to me. Every shipment seems to disappear into limbo the day before expected delivery. A shipment of tires showed status of delivered...but apparently not to me! Last week a workbench showed as out for delivery but didn’t actually arrive until next day...in a damaged box. Fear the notification “your package is arriving early”. It’s a guarantee it will be 3 days late if it shows up at all.


18 posted on 09/05/2022 10:15:56 AM PDT by 6ppc (Democrats would have to climb Everest to reach the level of "scum of the earth")
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To: apillar

I ordered something from Target more than a month ago and it never came so I called and got a refund. I bet this explains why it never came.

The ripple effect of the great reset is going to be absolutely devastating to everyone but those who forced it on us.


19 posted on 09/05/2022 10:21:28 AM PDT by Aria
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To: eyedigress
Better than Spalding.


20 posted on 09/05/2022 10:25:30 AM PDT by bagster ("Even bad men love their mamas".)
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