FedEx delivery network is 'on brink of COLLAPSE' because rising costs have pushed contractors to brink of bankruptcy, owner of delivery truck fleet warns
FedEx Ground's delivery system is at risk of complete collapse as the local contractors it relies upon face rising costs and without any sign that their compensation will go up any time soon.
The FedEx Ground network relies upon local delivery companies to make the package and parcel dropoffs on behalf of the $54 billion multinational conglomerate.
But now one of the largest delivery contractors is warning that the entire system is on the brink of falling apart with local workers unable to absorb any more rising costs.
The FedEx Ground network is in far more peril than what anyone realizes. If Wall Street analysts, if FedEx corporate, and FedEx ground understood the degree to which the network is in danger, there would be widespread panic,' said Spencer Patton, President of Route Consultant.
FedEx Ground works by utilizing the services of around 6,000 small businesses that are under contract with the company in order to make doorstep deliveries.
Patton, who controls a fleet of 275 delivery trucks and has 225 employees across 10 states on his books is looking for a raise of 50-cent per stop for delivery contractors and a 20-cent increase for long-haul trucking contractors by the end of November 25, the start of the holiday shipping season.
Patton was hoping to negotiate directly with FedEx Ground and had set up a 10-member committee in the hope of focusing their attention.
Patton insists that he is not attempting to set up a union - despite the setup looking remarkably similar.
'FedEx Ground has no network without contractors. And we have no network without FedEx Ground. So we are inextricably linked here together in our mutual destiny,' Patton told Insider.
FedEx Ground delivery network 'on the brink of COLLAPSE' as $54bn conglomerate 'refusing to act' | Daily Mail Online
