FedEx Corporation

Burq, a last-mile delivery technology company, is betting that enterprise retailers will pay for an orchestration layer that coordinates a growing bench of regional carriers, 3PL cross-dock networks, gig courier platforms, and private fleets. Jake Stein, who joined Burq four months ago to run retail growth after four and a half years at Uber, told FreightWaves that 55% of retailers now use carriers outside FedEx, UPS, and the U.S. Postal Service, and more than a third are actively moving volume away from the two national giants. Stein said Burq's system monitors orders after they leave a retailer's order management system, and can reassign a package to a different courier if a provider fails to pick it up within a set threshold, such as nine minutes. Alternative carriers moved 2.6 billion parcels last year, up 13%, while UPS and USPS volumes each fell 8.3%, according to the article. Stein expects autonomous delivery to grow for repeatable deliveries, though drone use cases will remain limited by weight, complexity, and signature requirements.

FedEx is permanently closing five facilities in Missouri and California, affecting 316 workers, as part of its Network 2.0 overhaul. The closures include two Missouri locations in Earth City and St. Louis affecting 143 employees, and three California sites in Palm Springs, Victorville, and San Diego affecting 173 workers. The company says the moves are related to its multiyear effort to combine Express and Ground operations and eliminate overlapping facilities and routes. FedEx expects the restructuring to generate $2 billion in savings by fiscal 2027, with about 45% of eligible package volume flowing through nearly 490 optimized stations by the end of June. TheStreet's review of state filings identified at least 762 affected workers across 16 FedEx locations or workforce actions in seven states so far in 2026.

CloudSEK has identified more than 2,500 organisations that may have been potentially affected by a major AI supply chain incident involving LiteLLM in March 2026, with approximately 434,000 automated software-development pipelines linked to the exposure. The potentially affected organisations span critical industries including technology, cybersecurity, banking and financial services, telecommunications, manufacturing, consulting, logistics, and enterprise software, with high-confidence matches associated with major global organisations including NVIDIA, Samsung Electronics, Cisco Systems, Siemens, S&P Global, ServiceNow, Deloitte, Vodafone, X Corp, Zscaler, FedEx, Volkswagen, Thales and London Stock Exchange Group. The incident occurred after cybercriminal group Team PCP compromised LiteLLM, and malicious versions were reportedly available through the Python software repository PyPI for only around 40 minutes, yet CloudSEK's analysis identified approximately 434,000 CI/CD pipelines potentially connected to the exposure. Potentially accessible information included cloud credentials, source-code access, server keys, software-development secrets, AI API keys and other credentials that could give attackers access to critical business systems, and CloudSEK stresses that appearing in the dataset does not automatically mean an organisation was successfully breached but should be investigated urgently. CloudSEK has released a free exposure-checking tool to help organisations determine whether credentials or infrastructure associated with them appear in the identified dataset.

Google CEO Sundar Pichai announced that the Gemini app has surpassed 1 billion monthly users, making it the company's 14th product to reach that milestone and its fastest-growing product. Separately, shares of Samsung Electronics and SK Hynix jumped about 8% in South Korea after a report that Singapore sovereign wealth fund Temasek plans to invest directly in both chipmakers, helping push the KOSPI more than 4% higher. The Pentagon launched the Golden Dome Hub, a portal to provide companies with information on contracting opportunities tied to the planned $185 billion missile-defense program, aiming to attract commercial technology firms and smaller defense contractors. Senator Bernie Sanders called on OpenAI, Anthropic, and Meta to freeze development of advanced AI models, citing risks the technology may pose. New York City lawmakers introduced the Delivery Protection Act, which would require certain last-mile delivery companies to directly employ workers instead of using third-party subcontractors, with Amazon as the main target and FedEx and UPS also potentially affected.

New York City Mayor Zohran Mamdani is backing a bill that would require last-mile delivery companies to directly employ workers instead of using third-party subcontractors. The Delivery Protection Act, introduced by Council Member Tiffany Cabán, would create a licensing system for certain last-mile warehouses and set minimum safety, training, and worker protection standards, holding the facility operator responsible for employing workers there. While Amazon is the main target, companies like FedEx and UPS would also be affected. Amazon has warned the bill could force it to relocate delivery operations outside New York City, and the Teamsters union claims Amazon spent over $5 million on lobbying against the measure.

An influential industry analyst predicted that United Parcel Service's 2028 contract negotiations with the Teamsters union will trigger a massive market reaction that either wipes UPS from the last-mile delivery market or severely damages its competitors. Satish Jindel, president of ShipMatrix Inc., said at a supply chain conference that UPS must convince the union that the current wage structure is unsustainable, as Teamsters drivers cost about $65 per hour in total compensation compared to FedEx drivers at about $35 to $39 per hour and regional carriers using gig workers at about $15 per hour or less. Jindel argued that if UPS takes a hard stand and replaces striking drivers with non-union workers from FedEx and Amazon, while leaning on its Roadie gig platform, it could dominate the parcel market like it did in the 1990s; conversely, giving in to union demands would cause its parcel business to wither away. He also criticized new Postmaster General David Steiner for switching back to providing last-mile delivery for e-commerce retailers, saying the Postal Service's high-cost, unionized workforce will make it increasingly difficult to offer Parcel Select service at a competitive price. Jindel added that Walmart, with its insourced gig-worker delivery model, would be best positioned to withstand the upheaval, while FedEx, Amazon, and regional startups would face significant challenges.

More than half of retailers are now using carriers outside FedEx, UPS and the U.S. Postal Service, as the maximum wait consumers will accept for free shipping has fallen to 2.6 days, according to AlixPartners' 14th annual Home Delivery Survey. The survey found 55% of retailers using alternative carriers, with over a third actively shifting volume away from FedEx and UPS, while 88% of shoppers said a late delivery with only an apology weakens or ends their willingness to buy again. Amazon handled 6.7 billion parcels in 2025, up 9.8%, becoming the largest domestic parcel carrier by volume, while alternative carriers including UniUni, Veho, Gofo, Jitsu, SpeedX, OnTrac and Better Trucks grew volume 13% to 2.6 billion units. Ground parcel rates ran 34% above the 2018 baseline during last year's peak season, and both FedEx and UPS implemented a 5.9% general rate increase for 2026. Reliability has edged past cost as the top reason executives pick their primary last-mile carrier, and 68% of executives named ETA accuracy their top AI priority for the next two to three years.

Amazon Shipping is offering corporate shippers rates up to 30% below comparable FedEx and UPS pricing, while waiving residential surcharges, according to a Supply Chain Dive report. Logistics platform Loop has seen shippers save as much as $6 per package by shifting eligible residential volume to Amazon Shipping, and one large retail client cut its annual shipping costs by more than 33% after routing most of its distribution through Amazon. Amazon Shipping is even undercutting the U.S. Postal Service on packages under a pound, according to Hannah Testani, chief executive of freight audit firm Intelligent Audit. FedEx and UPS shares slid after Morgan Stanley analyst Ravi Shanker warned that Amazon's growing delivery reach threatens both carriers, and both stocks surrendered gains once the pricing specifics circulated. Amazon still lacks overnight delivery, but Shanker believes it is likely not long before that becomes an option as well.

Amazon shares climbed about 1.5% on Thursday after a report said the company's shipping business is offering discounted rates to attract customers from rivals United Parcel Service and FedEx. The report, citing industry experts, said Amazon Shipping is approaching businesses with simplified pricing, no residential delivery surcharges and shipping rates that could be as much as 30% below comparable offerings from UPS and FedEx. The strategy is aimed at expanding Amazon's presence in the commercial parcel delivery market. Amazon has gradually broadened its logistics operations beyond supporting its own marketplace, earlier this year launching Amazon Supply Chain Services, which provides freight transportation, warehousing, fulfillment and parcel delivery through its network of trucks, aircraft and intermodal containers. While UPS and FedEx continue to dominate premium services such as overnight and same-day delivery, the report said Amazon's expanding logistics capabilities may increase pricing pressure across parts of the shipping industry.

UPS has invested $48 million in 27 temperature-controlled cross-dock facilities across several U.S. and international markets as part of its push to capture more healthcare shipping business. The investment covers both new builds and upgrades to existing locations, including Chicago, Los Angeles, Boston, Miami, and Toronto, with most sites situated in or near airports to enable rapid transfers between air and ground transport. The facilities support temperature-sensitive products like biologics and GLP-1 injectables, and can be used for consolidation or deconsolidation of shipments. UPS's healthcare portfolio generated more than $11 billion in revenue last year, and CEO Carol Tomé has called healthcare an important growth engine with double-digit operating margins. Rival FedEx is also expanding in this space, recently launching a dedicated FedEx Life Sciences organization and reporting nearly $10 billion in healthcare transportation revenue for its 2026 fiscal year.

FedEx Freight, now an independent company after spinning off from FedEx Corp. on June 1, forecast 4% to 6% revenue growth for the remaining seven months of the fiscal year, with adjusted earnings per share of $2.40 to $2.60 and an operating margin of 9% to 9.5%. The less-than-truckload carrier reported fiscal fourth-quarter revenue of $2.4 billion, a 4.8% increase driven by higher fuel surcharges and weight per shipment, while adjusted operating income fell 24% to $363 million. Average daily shipments declined 5.9% to 86,700, but weight per shipment rose 3% to 948 pounds and revenue per shipment jumped 11.5% to $415.22. FedEx Freight is the largest LTL company in the United States with a 17% market share, 355 service centers, and about 30,000 vehicles. The company's stock price dipped nearly 2% during the day and was down 1.2% in afterhours trading at $156.68 per share.

FedEx shares dropped more than 5% after the company issued weaker-than-expected calendar-year guidance, overshadowing a strong fiscal fourth-quarter performance. Revenue rose 12.5% year over year to $25 billion, beating analyst expectations, while adjusted earnings per share of $6.31 topped the consensus by 36 cents. The company completed the spin-off of FedEx Freight on June 1, which is expected to improve cash flow and capital returns, including a 5% dividend increase and aggressive share buybacks. Management forecast calendar-year revenue growth of about 11% and adjusted earnings with a midpoint of $17.50, which fell short of consensus estimates, though the transition to a calendar-year reporting period may have caused misalignment with analyst models. Analysts maintained a Moderate Buy rating with a 62% Buy-side bias, and institutional investors, who own over 85% of the stock, have been net buyers, suggesting the pullback could be a buying opportunity.