Originally Posted by
HIFLYR
Had a talk with the local manager at ramp while waiting to JS to mem. He said his area is going to save a lot by dropping Amazon because they were delivering many low yield Amazon packages to the extreme rural areas. He said at least now if they have to the package will provide more revenue. FWIW
This is pretty much it in a nutshell. As the Amazon buildout of their own delivery network expanded, the amount of freight tendered to FedEx for the large to medium size markets began slowly drying up a couple years ago. Eventually, Amazon only wanted to give FedEx the package volume going to the somewhat remote rural type areas, which are the most expensive deliveries to make. In a lot of these type deliveries, FedEx was losing money.