FedEx Corp. said Tuesday it will merge its FedEx Express and Ground operations in Canada, making Canada the first FedEx country where the two operations will be fully unified.
The combination will occur in phases, starting in April 2024 and finishing around the 2024 peak season, the company said.
Under the structure, FedEx Express will manage the operation and handle all the local pickup and delivery. FedEx Ground, the company’s ground-delivery unit operated by delivery contractors, will provide the middle-mile line-haul operation. The operation will be called FedEx Express Canada. FedEx Ground operations and personnel will transition to FedEx Express.
Canada is the 20th market where FedEx has merged Express, Ground and its services operations into one unit. The move to integrate operations was historic at FedEx because its business units have operated as individual units since its inception in 1973. The objective is to create enhanced efficiencies by reducing redundancies in commercial and residential operations.
In a statement, FedEx said that Canada is “a unique market with many factors contributing to this decision, including customer needs and key markets where the population is concentrated. The strengths of the air and international network in the market present a unique opportunity to leverage the existing Express network and model.”
The company has already merged operations in 19 U.S. markets, including Alaska and Hawaii.
