Wednesday, August 7, 2019
FedEx Won’t Renew Amazon Ground Contract
FedEx won’t renew its ground-delivery contract with Amazon when it expires at the end of the month. The delivery company is “reducing its dependency” on Amazon as the fulfillment company builds out its own logistics network. FedEx flagged Amazon as a competitive risk in its annual report to U.S. regulators.
Schneider National Inc. Shutting First to Final Mile Service
The trucking carrier will stop offering its First to Final Mile service delivering oversized goods to homes by the end of the year. Demand for home delivery of appliances and other large items has surged with the increase of e-commerce, but it’s often costly and difficult for trucking companies. Schneider said the shutdown was due to the “operating performance of the business and the assessment that the long-term prospects of that business and its markets were not favorable.”
Wayfair Adds Another Last-Mile Facility
Wayfair announced its 39th facility in North America in Savannah, Georgia. The company has continued to grow its delivery network despite concerns over its logistics and profitability and says it now has “a warehouse presence in most major U.S. port locations."
Shopify to Invest $1B in New Fulfillment Program
Shopify will invest $1B in its new fulfillment program intended to have full lifecycle capabilities to prevent shippers eventually moving to a larger fulfillment partner like Amazon. Shipper and partner responses to the June announcement of the new program were strong, and the company plans to introduce seven new warehouses this year.