Originally Posted by
C2078
Well, for example, they specifically mention PDX being at 65% workers needed, and having to re route packages due to lack of manpower, increasing inefficiencies and costs.
I’m not sure it matters but they said this was from the Ground division of the corporation.
Originally Posted by
DirtyPurple
Yep, right from the top, as quoted from Yahoo Finance:
Explained Subramaniam, "Our Portland Oregon hub is running with approximately 65% of the staffing needed to handle its normal volume. This staffing shortage has a pronounced impact on the operations, which results in our teams diverting 25% of the volume that would normally flow through this hub because it simply cannot be processed efficiently to meet our service standards. And in this case the volume that diverted must be rerouted and process, which drives inefficiencies in our operations and in turn higher costs. These inefficiencies included adding Incremental linehaul and delivery routes, meaning more miles driven and higher use of third-party transportation to enable us to bypass Portland entirely. Now that's merely one example."
And here is the rest of the quote that points out the problem is at Ground:
“…Now that's merely one example. Across the FedEx Ground network, there are more than six hundred thousand packages a day being rerouted. We anticipate the cost pressures from network inefficiencies such as the one I just illustrated to persist through peak as we navigate the labor market and impacts of new Covid.”