A the age of globalization and e-commerce, they were the kings. The American delivery giants, FedEx and UPS in the lead, were the winners in history. In Europe too, the champions of logistics, often from former public services of the post office or railway companies, have flourished alongside the warehouses which were built along the highways. But there are limits to growth. Since the end of the Covid-19 pandemic, delivery specialists seem to be struggling. In the wake of disappointing financial results, FedEx announced the separation of its parcel trucking business. However, it is number one in this activity in the United States, with 30,000 heavy goods vehicles plying the country’s roads and 9 billion dollars (8.7 billion euros) in turnover in 2023.
Like the firm’s other historical sectors, this activity is suffering from the end of the delivery boom and the overcapacity generated to cope with the shortage of delivery people and trucks during the years emerging from the crisis linked to Covid-19. The company’s management has warned that its outlook will not be very encouraging for the remainder of its fiscal year, given consumers’ reduced appetite for physical goods, in favor of services. Hence the gloominess of the delivery men. UPS had already sold its freight business in 2021.
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