FedEx Ground told its base of 6,000 contractors that domestic peak season volume is expected to be lighter than previously reported, as the company battles headwinds a year after package flow fell below forecasts, causing pain and outcries from contractors who invested heavily in trucks and drivers.
Global parcel volume increased 21% in 2021 to 159 billion pieces, according to an annual Pitney Bowes shipping index that tracks activity in 13 markets, but revenue increased at a slightly lower rate of 17% as declines in per-piece yield in China acted as a check on that growth.
Beauty retailer Sephora is upping its convenience game, launching an unlimited same-day delivery subscription for $49 per year, through its website or the Sephora app, a service not offered by main rival Ulta Beauty, which charges $9.95 per delivery without the app option. The program has no minimum and there is a 30-day free trial.
Clevon, maker of autonomous vehicles designed to run on city streets instead of sidewalks like many others, has opened up a U.S. office in Fort Worth, TX to launch its planned expansion here, with a number of big-box retailers and delivery providers interested, according to its CEO. The company has been running EVs in Europe since 2020.
The situation in the parcel industry — high shipping rates, increased surcharges and shipping delays — is a convergence of many complex issues, including supply/demand imbalance, a rough economy and geopolitical woes. Let’s take a closer look at how ecommerce and government laws have disrupted supply chains.
GoBolt, a white glove last-mile delivery service focused on carbon neutrality use electric vehicles and carbon offsets through a technology partnership, has launched parcel delivery in several U.S. and Canadian cities by leveraging an acquisition, with plans to expand as demand and adoption dictate.
FedEx detailed efforts to remove more than $6 billion in costs over time as capacity outstripped demand globally, while calling for the largest-ever rate increase of 6.9%, as analysts asked hard questions about operating missteps after a quarter with revenue up 6% but operating income down 18%.
While most markers indicate more than sufficient carrier capacity to meet Q4 demand, that doesn’t mean all is smooth sailing, with chokepoints and a possible dockworker strike. This operations special report on capacity management from Multichannel Merchant taps experts and retailers on the Q4 outlook and what to expect.
In a stunning move, FedEx said on Thursday a slowdown in volume worldwide contributed to a substantial Q1 revenue and income miss, and president and CEO Raj Subramanian told CNBC he believes a global recession is impending, as the company withdrew its fiscal 2023 forecast.
Lowe’s may still be Avis to Home Depot’s Hertz atop the home improvement sector, but it has something the orange big-box giant doesn’t: nationwide same-day delivery through an expansion of a trial that began in February with formerly grocery-only service Instacart in select locations.