FedEx has announced it will add a two-day air shipping service. The new service also comes at the same price it would usually charge for ground shipping. The company will soon be ending an air shipping contract, and this move may attempt to fill the void.
E-commerce continues to result in distribution centers being placed closer to highly populated areas. As a result, the demand for cross-country flights for packages has reduced. In the E-commerce industry, packages usually have set delivery dates as opposed to strict delivery times. As a result, FedEx has made a move to reduce the cost of its two-day air shipping service. Currently, the company has reduced prices to within 10% of its ground shipping service.
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