by Nate Wooley | October 23, 2012 12:08 pm
The holidays mean more shopping, and with more shopping comes more shipping.
Enter FedEx (NYSE:FDX).
On Monday, the global shipping giant announced that it will add 20,000 workers due to an anticipated 13% increase in shipping volume over the holidays. The increase is attributed to greater e-commerce shopping and last-minute gift buyers.
FedEx also added 20,000 workers last year to deal with a smaller expected increase in shipping; however, the company has added staffers throughout 2012, so a larger seasonal hiring boom wasn’t necessary.
The majority of the holiday volume is expected to go through the firm’s Ground and SmartPost delivery systems. These cheaper alternatives may lead to lower profits for FedEx, though, as they take away from the quicker — and more expensive — delivery options.
FedEx expects to handle more than 280 million packages this season, with 19 million falling on Dec. 10 — so-called “Green Monday.”
Source URL: http://investorplace.com/2012/10/fedex-adding-20000-workers-for-the-holidays/
Short URL: http://invstplc.com/1nxO98e
Copyright ©2017 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.