FedEx to suspend Sunday deliveries in U.S.

By: The Trend Wire

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In select low-density, rural U.S. regions, FedEx Corp. said on Thursday that Sunday delivery operations will be suspended beginning on August 15.

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The major American delivery corporation claimed that the change will boost the effectiveness of its Ground division

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which handles the majority of the company's e-commerce home deliveries and can reach roughly 80% of Americans on Sundays.

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According to market realities and customer demands FedEx is optimising its delivery network, the firm said in a statement sent by email to Reuters. 

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As soon as the COVID-19 epidemic hit in early 2020, the company began offering Sunday deliveries to keep up with the significant increase in demand.

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"Nearly 95% of Americans now have access to Sunday residential delivery as a result of our faster rollout.

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We are implementing operational changes to halt Sunday delivery operations due to the changing economic climate "It read.

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The precise markets that will be impacted by the new regulation were not made clear by Fedex.

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The choice is being made as the business struggles with cooling demand and its Ground unit contractors who seek more money to offset their escalating costs.

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Earlier this month, at least two brokerage firms lowered their target price on the stock of FedEx.