FedEx is implementing its Network 2.0 changes. This is resulting in layoffs and station closures, according to Supply Chain Dive.
Network 2.0 is FedEx’s multi-year initiative to integrate its Express and Ground networks into a unified system. The goal is to boost efficiency, reduce costs, and simplify pickups and deliveries for shippers by eliminating overlapping routes. This merger aims to strengthen FedEx’s position vs. competitors like UPS.
FedEx has fully closed approximately 100 ship centers and converted around 290 stations to handle combined Express and Ground volume. An additional 63 stations across 20 U.S. markets were scheduled for conversion in early June.
While FedEx maintains transit times remain unaffected, local customers and shippers are being kept informed to manage expectations. In markets where Network 2.0 has been fully implemented, FedEx has achieved about 10% lower pickup and delivery costs.
June shipments to the Port of LA exploded, up 8% year over year, as brands worked around tariffs to bring in or catch up on shipments. Imports surged approximately 32% above May's levels, driven by a “tariff whipsaw” effect. Importers faced dramatic cost increases—some shipping loads jumped from ~$1,500–2,000 to $40,000–50,000 due to overlapping tariffs.
Importers were rushing shipments ahead of expected mid-August tariff hikes—part of shifting U.S.-China trade policy. The National Retail Federation projects a double-digit drop in container volumes from August–November as tariffs take effect. For brands, this likely means price relief in the back half of the year - though few know how policy changes and holiday volumes will affect the market.
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