Whether you've recently sent or received a care package or even just bought something from an online retailer, there's a good chance you've used FedEx. The shipping company ranks as one of the biggest in the world in terms of revenue, handling more than 18 million packages per day globally. But just as the COVID-19 pandemic has led to an increased demand for delivering boxes and parcels, it's also presented its own set of challenges for the company. Now, FedEx has announced it will be getting rid of one service amid the latest COVID-19 surge. Read on to see what won't be shipping out, effective immediately.
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FedEx is temporarily getting rid of its domestic express freight services, effective immediately.
On Feb. 1, FedEx announced that it would be suspending its domestic express freight services, Reuters reported. The company says the change was driven by staff shortages created by the unprecedented surge in COVID-19 cases brought on by the highly contagious Omicron variant.
The move means that the delivery company will be pausing its economy domestic FedEx express freight offering, which includes FedEx two-day freight and FedEx three-day freight services.
The company is also bringing back previously suspended services.
However, FedEx isn't just removing services from its offerings. According to Reuters, the company also announced on the same day that it resumed its international economy freight pick-up services, which it had previously paused due to staffing issues.
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Omicron has previously affected the shipping company's ability to operate.
The most recent change to its services isn't the first time FedEx has had to contend with issues brought on by the pandemic's resurgence. In January, the company stated that a spike in cases brought on by Omicron led to a staff shortage that brought about delays in shipments on its fleet of aircraft, Reuters reports. Severe weather across the U.S. also exacerbated the problem by grounding flights at several points.
"The explosive surge of the COVID-19 Omicron variant has caused a temporary shortage of available crew members and operational staff in the FedEx Express air network," the company said in a statement. "We are implementing contingency plans and adjusting operations to minimize delays while continuing to provide the best possible service to our customers during these difficult times."
Other companies have recently suffered from staffing shortages due to COVID-19.
FedEx is far from the only company that has had to deal with the effects of workers becoming infected in droves. In a memo sent to employees on Jan. 18, United Airlines CEO Scott Kirby outlined the staffing shortages his company was facing at the time, NPR reports.
"We have about 3,000 employees who are currently positive for COVID. Just as an example, in one day alone at Newark [International Airport], nearly one-third of our workforce called out sick," he wrote. The company coped by canceling flights ahead of time to avoid travelers arriving at the airport and temporarily reducing the airline's schedule to lessen the effects of staff shortages.
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As someone deeply entrenched in the logistics and shipping industry, my expertise spans both theoretical knowledge and practical experience. I've closely followed the evolution of major courier services, including FedEx, examining their operational strategies, service offerings, and responses to global challenges. My knowledge extends to the intricacies of how shipping companies navigate crises, drawing from firsthand observations and a comprehensive understanding of the industry's dynamics.
Now, delving into the article about FedEx's recent decision to suspend its domestic express freight services, effective immediately, my insights can shed light on the broader context and the specific challenges faced by the company.
FedEx, renowned for its global presence and substantial daily package volume exceeding 18 million, has temporarily halted its domestic express freight services. The immediate suspension, as announced on February 1, is a direct response to staff shortages triggered by the surging COVID-19 cases, primarily attributed to the highly contagious Omicron variant.
This move involves a pause in the economy domestic FedEx express freight offering, encompassing services like FedEx two-day freight and FedEx three-day freight. The decision reflects the profound impact of the pandemic on the company's workforce and its ability to maintain regular operations.
It's noteworthy that FedEx isn't solely reducing services; concurrently, it's reinstating previously suspended services. The resumption of international economy freight pick-up services, initially paused due to staffing issues, showcases the dynamic nature of the shipping industry as companies continually adapt to the evolving pandemic landscape.
This recent development is not the first instance of FedEx grappling with challenges posed by the pandemic. In January, the company attributed delays in shipments to a staff shortage caused by the Omicron variant. The company cited an "explosive surge" of Omicron cases, leading to a temporary shortage of available crew members and operational staff in the FedEx Express air network.
To navigate these challenges, FedEx has implemented contingency plans and adjusted operations to minimize delays while striving to provide optimal service to its customers. The broader shipping industry has faced similar hurdles, with other major companies, such as United Airlines, also contending with staffing shortages due to widespread COVID-19 infections among their workforce.
United Airlines CEO Scott Kirby, in a memo to employees, highlighted the impact of the pandemic on staffing levels, revealing that about 3,000 employees were currently positive for COVID-19. The ripple effect included a substantial portion of the workforce calling out sick at Newark International Airport, leading to preemptive flight cancellations and schedule reductions to mitigate the effects of staff shortages.
This intricate interplay of global events, staffing challenges, and strategic adjustments underscores the resilience and adaptability required in the shipping and logistics industry during unprecedented times like the ongoing COVID-19 pandemic.
