A financial dispute between a global delivery giant and its ground shipping partners is threatening to cause chaos this holiday season.
FedEx’s Ground division, which delivers the bulk of the company’s shipments, relies on a vast network of smaller delivery companies.
Amid higher prices for fuel, vehicles and personnel, nearly one-third of those contractors say they’re currently losing money.
Contractors want to change how they’re paid by FedEx — and some suggested they could halt deliveries right before Black Friday.
The mechanics of a broad delivery stoppage, however, are unclear.
A coordinated shutdown by separate companies, CNN notes, would violate federal antitrust law.
FedEx acknowledged the challenging conditions and said it was committed to addressing problems on an individual basis.
Revenues at FedEx Ground have reportedly jumped 60% since the beginning of the pandemic.
