FedUp? Left Hanging? FedEx drops LTL – Not Palatable Freight

Recently, 1,400 customers were left hanging in June when FedEx dropped their LTL Freight customers. If you were one of them then you probably got fed up and ended up with a bad taste in your palate.  FedEx suspended over 1,400 LTL customers in its freight (LTL) shipping division.  This action shocked many because on a Friday they got a call saying, “Monday we won’t be showing up for your LTL”   That caused a big scramble.  Shipping managers would hear, “Who is going to pick up our pallets….Who can pick up our freight now?” 

FedEx dropped these particular customers because their pallets were not typical or desirable sizes. They were looking for ideal LTL freight that’s quick and easy to pick up. (not over-sized with odd heights and longer dims) You know – in and out – next…  Efficiency is key in today’s LTL bottom line.

Due to the incredible amount of e-commerce spending during the pandemic they needed some relief.  Fortunately, for some, FedEx resumed service. However, many were left hanging and others with a bad aftertaste. I guess you could say it wasn’t palatable. It was a wake up call – the kind you don’t want to get.

Hello? Wake Up? Plan B?  That is why many are using 3PLs like DGL Logistics.  They are a wise alternative and can save you from getting fed up or worse stuck with freight that has to move out.  Freight has to move in order for anyone to make money. Relationships are everything and in today’s world of freight – it matters!

Remember back in December when UPS imposed restrictions on some larger customers as well due to the holiday crunch.  Again, panic ensued and our phones had desperate callers on the line. Funny thing – money was not an i$$ue. I guess when you have to have it moved, nothing else matters, but it shouldn’t be that way!

There are also other ways that freight companies can curtail the massive volume of pallets being picked up.   One such way is to impose a shipment fee on certain ZIP Codes.   FedEx imposed a $30 per shipment on delivery to certain areas in July. Some of these areas are Seattle, Miami, New Jersey and Long Island. These cities have a high density of traffic as well as logistics challenges moving pallets via LTL.

If you remember back to 2019 FedEx stopped handling Ground deliveries for Amazon. They were one of its biggest e-commerce shippers.  Additionally, FedEx recently started picking up its own packages that used to be dropped off at the US Post Office adding to its load. To alleviate an already strained system, it is shifting some of the Express service deliveries to its Ground service when possible. Other carriers are scrambling to handle the increased demand due to online orders.

Delays and on time ratings are difficult statistics to keep up with. FedEx has a 71% on-time delivery in May and UPS claims 89% on time delivery. Congestion as well as capacity constraints in specific geographic areas are always difficult to contend with successfully. 

Sever weather delays were issues ranging from OCEAN containers in rough seas to actual lost containers gone overboard .  Additionally, US Highway closures and Bridge repairs became significant bottlenecks for truck drivers.  Long lines due to re-routing of a closed bridge with a cracked 900 foot steel beam caused hours of delays for truck drivers on the I-40 “Old Bridge” linking Arkansas and Tennessee.  It is estimated to have cost the industry about $2.4 million per day.

When delays happen people start looking for alternatives to handle their LTL business. As a result, DGL Logistics stepped up their LTL and freight division.  We’ve seen a record increase in LTL movement within the US and internationally.  One reason is that the shortage of ocean container availability had a lot of clients choosing to ship pallets by AIR or in smaller quantities to get at least some of their product to their clients overseas. Plan ahead, as we approach the Christmas Crunch as companies try to restock depleted inventory.

Whether you have to move a pallet LTL within the United States or ship it AIR overseas give us a call.  Let us help you out.  We’ll pick up your freight even if it’s over-sized !

Don’t get fed up – Just give us a call and reduce the stress so you can enjoy your free time with your family. 

By David Lorusso

CEO /DGL Logistics, LLC

[email protected]

Related Articles

© 2017- 2021 DGL Logistics, LLC - All Rights Reserved - Authorized Provider of Freight Tranz, LLC
Made with ♡ by Snazzy Solutions!