FedEx Ground Expands U.S. Operations to Six Days Per Week Year-Round
September 12 2018 - 8:00AM
Business Wire
Decades of Investment in Industry-Leading
Technology and Facilities Provide FedEx Ground with Speed,
Efficiency and Reliability
FedEx Preparing to Deliver Record Volumes This
Holiday Season and Beyond
FedEx Corp. (NYSE: FDX) has boosted its capacity and operational
innovation to expand FedEx Ground U.S. operations to six days per
week in response to the growing e-commerce demand and record influx
of volume expected this holiday season, and beyond.
“FedEx anticipated early on that the growth of e-commerce would
significantly increase demand throughout our network, and we
underwent a transformation by opening new facilities and investing
in highly-advanced technology and innovations that have resulted in
the most automated network in the industry, delivering the speed
and reliability our customers value highly,” said Raj Subramaniam,
executive vice president, chief marketing and communications
officer, FedEx Corp. “These significant facility and automation
investments have been taking place for many years, but are now
largely complete. This expanded capacity and increased efficiency
will create margin and profitability benefits at the same time that
FedEx Ground capital investment will be decreasing.”
FedEx has more than 425,000 dedicated team members who stand
ready to deliver for customers throughout this expected record
holiday season, and to continue to provide outstanding service
year-round.
The rise in demand and volume at FedEx has been dramatic and
consistent for more than 10 years. For example, the record volume
day in the history of FedEx 10 years ago was 12 million shipments.
Today, FedEx handles more than 14 million shipments on an average
day.
FedEx anticipates a record amount of volume through its network
again this year. In order to deliver exceptional service during
this busy time, FedEx will increase hours for some existing
employees, and hire for approximately 55,000 positions during the
holiday season.
FedEx Ground will once again run six- and seven-day operations
through the holiday season, and will continue six-day operations
throughout its U.S. network year-round.
“The rise in demand for e-commerce goes beyond peak. It’s a
year-round phenomenon and we are ready to meet that demand,” said
Subramaniam. “FedEx Ground has operated six- and seven-day
operations during the holidays for several years as e-commerce has
grown, and thanks to strategic investments in our network, we are
now well-positioned to operate six days a week in the U.S. all year
to best serve the rapidly growing demand.”
Since 2005, as part of a network expansion plan to boost daily
package volume capacity and further enhance the speed and service
capabilities of its network, FedEx Ground has opened 15 new hubs
featuring advanced material-handling systems. In the past five
years, FedEx Ground has added nearly 36 million square feet to its
network, including the opening of nine new hubs and 58 automated
stations.
Investments in innovations such as automation, robotics and
real-time route planning, sortation and delivery technology
continue to enhance the agility of the global FedEx network.
- Autonomous, driverless tugger
technologies are enabling FedEx Ground to more effectively handle
large, non-conveyable packages, which comprise more than 10 percent
of FedEx Ground package volume.
- Robotic trailer unloading systems use a
combination of robotic technology (sensing, movement and
intelligence) with bulk unloading techniques.
- The deployment of trailer load
analytics in hubs and automated stations to provide performance
monitoring of trailer load quality and utilization.
- FedEx Ground yard management systems,
which interact with GPS tags on each trailer and creates geofences
around FedEx Ground facilities, automatically notify the control
center when a trailer arrives and departs.
- FedEx is increasing its use of data
science and analytics to enhance real-time decision-making around
network engineering, scheduling and customer needs.
- FedEx Express has installed enhanced
vision systems on our cargo planes. The infrared night-vision
system greatly improves pilots' ability to land in low-visibility
conditions and mitigate potential weather delays. This technology
allows FedEx Express aircraft to descend to 100 feet above the
touch down zone elevation of the runway.
- FedEx Express has enhanced the
capabilities and economics of its global network through a
multi-year fleet modernization program. Since its inception in
fiscal 2007, the program has brought in a total of 210 more
reliable and efficient aircraft (34 777Fs, 57 767Fs and 119
757Fs).
About FedEx Corp.
FedEx Corp. (NYSE: FDX) provides customers and businesses
worldwide with a broad portfolio of transportation, e-commerce and
business services. With annual revenues of $65 billion, the company
offers integrated business solutions through operating companies
competing collectively and managed collaboratively, under the
respected FedEx brand. Consistently ranked among the world's most
admired and trusted employers, FedEx inspires its more than 425,000
team members to remain focused on safety, the highest ethical and
professional standards and the needs of their customers and
communities. To learn more about how FedEx connects people and
possibilities around the world, please visit about.fedex.com.
Forward-Looking Statements
Certain statements in this press release may be
considered forward-looking statements, such as statements relating
to management’s views with respect to future events and financial
performance. Such forward-looking statements are subject to risks,
uncertainties and other factors which could cause actual results to
differ materially from historical experience or from future results
expressed or implied by such forward-looking statements. Potential
risks and uncertainties include, but are not limited to, the
ability of FedEx Ground to reduce future capital expenditures and
to achieve improved financial performance as a result of previous
capital and technology investments, changes in customer demand for
our services, our ability to match capacity to shifting volume
levels, and other factors which can be found in FedEx Corp.’s and
its subsidiaries’ press releases and FedEx Corp.’s filings with the
SEC. Any forward-looking statement speaks only as of the date on
which it is made. We do not undertake or assume any obligation to
update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180912005548/en/
FedEx Media RelationsPatrick Fitzgerald, 901-818-7300
FedEx (NYSE:FDX)
Historical Stock Chart
From Aug 2024 to Sep 2024
FedEx (NYSE:FDX)
Historical Stock Chart
From Sep 2023 to Sep 2024