FedEx Thread

Starting this thread so we can to elaborate on FedEx’s lack there of guidance for 2023 and impacts.

With all else standing true, I can’t help but think FedEx itself is partly to blame for their inability to compete with Amazon’s shipping logistics and their own shortcomings (as one example). FedEx has always been known to give decent benefits but UPS has also grabbed a lot of young lads to build up their long term fleets. I had noticed the local FedEx drivers changed of hand a few times this year and I’ve actually seen them less in the roads. Are companies avoiding them altogether and could their lack of forward guidance be more about their internal logistics and inabilities to scale in a profitable manner? Are drivers internally leaving? Just feels all too easy for the company to blame the economy, albeit in a supply chain cluster, without also thinking that FedEx ignored some writings on the wall and failed to prepare accordingly.

We shall see, but curious if anyone else had been thinking on similar lines to me or if I’m just “too out there” on this.


FedEx delivery and freight drivers aren’t FedEx employees. FedEx contracts out all their routes to independent companies. Drivers are employees of those companies and get paid extra to wear FedEx uniforms. Those contracts come up for renewal and are renegotiated just like any other contract. FedEx can’t just unilaterally lower how much they are paying per route given they are all under contract for set terms. If they experience a sudden decrease in demand, they aren’t able to easily adjust to less revenue.

Thank you for the correction on their labor. Sounds like this is more of a failing business model during trying times. They are stuck to this model and ultimately blame the economy for their inabilities to adapt.

This topic was automatically closed 14 days after the last reply. New replies are no longer allowed.