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FedEx Archives: 1997 Press Releases

( BW)(FEDERAL-EXPRESS)(FDX) FedEx Announces New Measures to Sustain Service Performance

Business Editors

MEMPHIS, Tenn.--(BUSINESS WIRE)--Aug. 11, 1997--Federal Express Corp. (FedEx) announced Monday additional service changes and re-emphasized current measures so the company can continue to deliver its customers' goods on a reliable, timely basis during the Teamsters strike against UPS.
"FedEx employees have gone beyond the call of duty to provide customers with the best level of service possible under the circumstances," said David Rebholz, senior vice president for U.S. & Canada. "While we are doing as much as we can, we know some consumers are frustrated as the strike enters its second week."
While FedEx has been forced to limit the number of packages shipped by its customers, most seem to understand the necessity of these measures and have been pleased with our performance. "Despite the UPS strike, Federal Express has continued to provide the excellent service we've come to expect," said Kurt Diserod, product delivery coordinator at GTCO in Columbia, Md. "As a manufacturer of time-sensitive computer equipment, our business depends on time-definite deliveries. "GTCO usually ships about 40-50 packages a day with Federal Express."
Federal Express is the world's largest express transportation company employing approximately 130,000 people. The company has nearly 43,000 drop-off locations, and operates more than 580 aircraft and 38,000 vehicles in its integrated global network. Federal Express reported revenues of $11.5 billion for its fiscal year ended May 31, 1997.
-0- *T Changes Announced Today (August 11) By FedEx
-- Each customer may ship up to five packages daily at FedEx drop-off locations. -- FedEx(R) Collect on Delivery (C.O.D.) packages will be accepted only with paperwork generated by a FedEx customer automation shipping system, such as FedEx Powership(R) and FedEx Ship(R). -- FedEx will now attempt one delivery of a C.O.D. package before holding it at a station for pickup. Last week, all C.O.D. packages were held for pickup. -- FedEx highly recommends that perishable goods be shipped by FedEx Priority Overnight(R) or FedEx Standard Overnight(R) for next business day delivery. -- All FedEx International Priority(R) shipments are being handled without limits. Measures in Effect Since Last Week: -- Cutoff times for drop boxes are at least three hours earlier, and further adjustments may be needed. Cutoff times at FedEx World Service Centers continue at least two hours earlier or until we have reached our volume capacity. -- Customers are encouraged to bring their packages early in the day and double-check the latest cutoff times at the location where they regularly leave their packages for any further changes. -- Regularly scheduled FedEx pickup customers can ship only 10% above their average daily volume or up to 10 packages, whichever is greater, depending on local market conditions. -- There will be no on-call pickups for callers without existing account numbers. -- FedEx will continue to accept checks and credit cards but will not accept cash. -- New accounts are not being opened in the U.S. until the UPS strike is resolved. As announced previously and as provided in our Service Guide, until further notice, the money-back guarantee will be suspended for all services except intraAsian FedEx International Priority(R), intraEuropean FedEx International Priority(R) and domestic Canadian services.
Background Information
Express versus Parcel Post -- It is important to understand the differences in the express business and parcel post delivery. Customers turn to FedEx because they expect speedy, time-certain, and reliable service, and tracking information; increasingly their packages are being shipped globally. -- That is not UPS' primary business. Less than 1/6 of their packages fall into that category. More than 80% of UPS packages are traditional parcel post. That is defined generally as delivery with no firm commitment date for delivery; delivery can take anywhere from one to six days -- sometimes longer. This service offers no guarantees and is priced most cheaply. Their average daily volume for the parcel post market is estimated at 13.8 million packages a day. Federal Express does not serve this market. We must focus and provide service for the business we're in.
Important Differences in Now and Peak Season -- Customers have a choice of carriers during the holiday peak season. In addition, FedEx has the benefit of 25 years experience and sophisticated data about shipping patterns during the holidays. We develop contingency plans over an 11-month period and talk with customers about their anticipated needs. -- The UPS strike is unprecedented. In this situation, we are dealing with UPS customers and handling a segment of the market that we do not traditionally handle. -- The only thing similar to the current situation and peak season is the amount of volume.
Employees Working Around the Clock -- We have been placed in a situation that is counter to our culture. It is extremely difficult for our employees to have to turn some potential customers away. Our employees have been hired and trained to go above and beyond the call of duty every day for our customers. -- We must be honest with the American public about what our system is able to handle as a result of the UPS strike so that we do not set unrealistic expectations. This is precisely why our hours of operation have been adjusted and customer shipments have been limited. -- We're all in this situation together, and we'll continue to go above and beyond for customers. All of our employees are working around the clock to try to handle this influx in volume.
FedEx Hopes for Quick Resolution of Strike -- We continue to hope that this strike between the Teamsters and UPS is over soon. *T --30--LB/na* CONTACT: Federal Express, Memphis Media Relations, 901/395-5007 KEYWORD: TENNESSEE INDUSTRY KEYWORD: TRANSPORTATION URL: http://www.fedex.com Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. URL: http://www.businesswire.com