FedEx suspends some freight shipment services over operational issues

*FedEx is temporarily halting economy domestic FedEx express freight, including FedEx two-day freight and FedEx three-day freight services as a result of staff shortages and supply chain issues.

Alexander Davis | ConsumerConnect

FedEx has suspended its express freight services in the United States (US) due to staff shortages and supply chain issues.

The logistics firm is currently facing a staff shortage because of the Omicron variant of COVID-19 pandemic, agency report said.

Accordingly, FedEx is temporarily halting economy domestic FedEx express freight, including FedEx two-day freight and FedEx three-day freight services.

Meanwhile, some consumers recently posting reviews at ConsumerAffairs have noticed the problem and complained about what they called excessive delays, report stated.

Certain IIan, of Mt. Airy, Md., wrote in a review: “Our order for business materials, which we desperately need, was supposed to be delivered on 1/20/22.

“By 1/24/22, we were starting to get concerned, so we called. FedEx promised that the package would be delivered that day. Nope.

“Every day thereafter, we called, everyday they promised it would be delivered. It is now 1/31/22, no package.”

Alan, of Marengo, Ohio, reports a similar experience. He told us he has two orders somewhere in the FedEx system.

“One was supposed to be here Thursday, the other one Friday,” he wrote in his post. “Supposedly weather delays, but the last 2 days have been sunny and bright. Heck of a way to run a business isn’t it?”

Supply chain ripple effect

It was gathered that FedEx January 2022, had warned clients that the surge of Omicron cases among its staff was causing staff shortages that result in delays.

Compounding the problem, the company said air transport firms were also facing staff shortages and severe weather in many parts of the country.

FedEx is an international company, so what happens in other countries across the world can have a ripple effect on its operations in the US.

Parash Jain, Global Head of Shipping and Ports Equity Research at HSBC, says China’s crackdown on the latest COVID-19 outbreak is making it harder for the global supply chain to recover.

Jain told CNBC’s “Squawk Box Asia” in the week, that “the sheer importance of China when it comes to global trade means that any small disruption in China, will have a ripple effect across the company’s supply chain.”

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