FedEx Freight offers next-day guarantee
FedEx Corp. said it will offer a money-back guarantee for delivery by 10:30am the next day through its freight unit.
FedEx Corp. said it will offer a money-back guarantee for delivery by 10:30am the next day through its freight unit.
FedEx started its regional less-than-truckload freight service in 2001 and began offering a next-day guarantee in 2003.
FedEx Freight Chief Executive Doug Duncan said the flat-rate, time-specific service should help customers manage inventory during difficult economic times.
Duncan said a number of shippers dealing with shrinking inventories asked for time-definite morning deliveries – including wholesalers, manufacturers and suppliers.
Trucking companies, especially less-than-truckload carriers, have been suffering from plunging demand and slimmer shipments as the economy weakens. Many analysts think that the freight market went into a recession in the fourth quarter of 2006, a full year before the broader economy did.
A typical freight shipment on a FedEx truck weighs about 1000 pounds, Duncan said, but can range anywhere from 500 to 5000 pounds. He estimates that FedEx Freight has about 20% market share among public less-than-truckload companies.
