FedEx | System Down (2024)

FAQs

What is going on with FedEx 2024? ›

FedEx charges ahead with Network 2.0, rolling out to dozens more locations in 2024. The plan to integrate its separate Express and Ground delivery networks will help close a key gap with UPS, one executive said.

If you are not home to sign for your package, a doortag will be left at your door and the driver may reattempt delivery.

“In U.S. domestic package, year-over-year volume declines continued to moderate,” Brie Carere, executive vice president and chief commercial officer at FedEx, said during the call.

Shipment details are updated once FedEx has received the package. If you already have a tracking number or reference ID but don't see any updates, it means the package is still at the shipper's original location.

FedEx blamed the 2% revenue decrease primarily on lower fuel surcharges at all its transportation segments along with decreased volumes in its FedEx Express and FedEx Freight segments. Revenue from FedEx's package delivery business increased less than 1% to $8.26 billion.

The Memphis, Tennessee-based company said it is cutting jobs and consolidating some teams to streamline its workforce and reduce structural costs. FedEx anticipates it will lay off 1,700 to 2,000 employees, reportedly costing the company between $250 million and $375 million through the 2026 fiscal year.

Quarterly operating income for the air-based Express unit fell 60%, hit by volatile macroeconomic conditions, muted retailer restocking and reduced demand from its largest customer, the U.S. Postal Service (USPS). The U.S. Post Office has been diverting more packages from higher-margin air services to ground services.

FedEx's odds of distress is under 9% at this time. It has tiny probability of undergoing some form of financial crisis in the near future. Probability of bankruptcy shows the probability of financial torment over the next two years of operations under current economic and market conditions.

Seasonal weather events (such as severe winter storms or wildfires) and other disruptions (such as power outages, special events, and national emergencies) may occur and cause delays for inbound and outbound shipments.

Why is FedEx taking so long to deliver my package? ›

Operational delays occur for a variety of reasons; the following are some examples: Incorrect recipient address. Incorrect recipient postal code. Missing address information (including buzzer code or apartment number)

Packages are scanned at various points between pickup and delivery. The frequency of scans varies, and it's not unusual for a shipment to go more than 24 hours without an update while it's on its way to the final destination. This is especially true during periods of long travel.

FedEx is shuttering four facilities in southwestern Florida in 2024, according to Worker Adjustment and Retraining Notification (WARN) Act notices filed on April 17. The four closures will result in the layoff of 220 couriers and eight managers.

The company projected fiscal 2025 earnings of $20 to $22 per share, slightly above analysts' estimates. Cost-cutting measures are expected to save $2.2 billion, addressing the current slump in freight demand.

With a target of reducing permanent costs by a staggering $4 billion by the end of fiscal year 2025, this move was set to reshape FedEx's operations and solidify its position as a global leader in logistics.

“We have approximately 30% more doors than our closest competitor and approximately 40% more than our second closest competitor,” the FedEx spokesperson said. FedEx Freight closed 29 U.S. service centers from May to August 2023 as part of its ongoing efficiency drive.