Spencer Patton, whose company operates 225 routes in 10 states, has publicly pushed for better contract terms for delivery providers to account for inflation. At a contractor event in Las Vegas, he announced that he will stop operating his delivery routes as of Nov. 25 unless FedEx adjusts the terms of his contract.
But some contractors attending the Las Vegas event have had difficulty securing the contract adjustments they’ve wanted, Stephens analyst Jack Atkins said in a note Monday.
“However, as one contractor told us, a renegotiation is like a sasquatch…he’s heard of one, but has never seen one,” Atkins wrote. “That was our sense broadly, contractors that have asked for a renegotiation have either been told no or the requests have gone unanswered.”
Experts say this year’s peak season is expected to see better carrier service and earlier ordering activity. Several contractors “have been guided by [FedEx] to prepare for a mid-single-digit decline in volume in the 2022 peak period,” Atkins wrote, meaning lower activity during what is their most profitable period.
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