Tuesday, February 9, 2010

FedEx Sees Disruption Due to the Harsh Weather

FedEx said the company's Memphis hub and flight operations experienced disruptions due to the winter weather storm that rolled through Memphis Monday night. Although they still had staff on the ground and operating, there are some packages that might be delayed. According to FedEx, they have suspended "money-back guarantee for U.S. packages and shipments inbound into the U.S. from international locations with a delivery commitment of Tuesday, Feb. 9, 2010," consistent with the provisions of the FedEx Service Guide. Logistic company's such as FedEx and UPS can see substantial losses in revenue due to the implements of bad weather. It is hard to deliver packages on icy roads and this causes FedEx to shut down operation in the areas that are not safe. Washington D.C. was hit hard by the winter storm and a FedEx spokesmen said, " we will hold the packages until they can be delivered." A good thing is that FedEx has been recently trading up nearly 3.5% at $79.22.

1 comment:

  1. A very literal external environment here! Memphis is in a unique bubble of climate that has made FedEx able to avoid this often. I wonder if they knew we had a very black woolly this year (http://www.insectslimited.com/Issue%2077.pdf )

    ReplyDelete