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FedEx Corp. suspended about 1,400 customers of its Freight shipping service earlier this month, a move that surprised customers and was aimed at easing a congested network taxed by relentless package volume.
The shipping and logistics giant dropped the customers without notice, leaving some businesses hunting for a new option to move their products. FedEx
FDX,
resumed service to some customers this week. While a surge in e-commerce spending during the Covid-19 pandemic has strained shipping companies of all sorts, FedEx has lagged behind rivals in keeping deliveries on time this year.
A FedEx spokeswoman said the cuts were “designed to minimize network disruptions and balance our capacity and demand to avoid backlogs across the country—particularly in the most capacity-constrained Freight service centers.” The company is due to report quarterly financial results after the market closes Thursday.
FedEx’s move “was a temporary step that provided necessary volume relief and allowed us to begin bringing some of the volume back in a controlled manner,” the FedEx spokeswoman said. The company said it continues to work with customers to address service concerns and had lifted suspensions on hundreds of them by Wednesday. She declined to comment about specific customers or whether FedEx might implement such a move again.
An expanded version of this report appears at WSJ.com.
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