FedEx may move to boost express volumes with air service re-pricing

Weather, COVID disruptions weigh on FedEx Express air ops

FedEx may soon offer two-day air services at the same price as ground delivery for customers in its Express network. The move would serve to boost the integrator’s cargo volumes within the program.

The decision, as reported by the Wall Street Journal, comes on the heels of FedEx’s plans, announced earlier this month, to break off its express relationship with Amazon, as reported by our sister site, Cargo Facts. While the size of Amazon’s networks are not yet comparable to those of FedEx or UPS, FedEx clearly seeks to maintain a competitive edge against the e-tailer and its evolving logistics operations. 

For its part, a FedEx spokesperson said today that the company “did not recently change our pricing strategy” in response to the end of its express relationship with Amazon, adding that FedEx does have a two-day option for some of its SME customers that “offers very good value.” However, while FedEx is expanding its relationship with other retailers, including Dollar General, the integrator said it is not preparing for a widescale re-pricing of its two-day air service.

Earlier this year, FedEx began offering late-night shipping options for retailers apart from its former operations with Amazon. The integrator also recently announced plans to develop autonomous same-day delivery robots.

This story has been updated to include comments from FedEx.

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