Distributors brace for FedEx strike
By Staff -- Industrial Distribution, 12/1/1998
Newton, Mass. -- A prospective strike by Federal Express pilots this month sent many distributors scrambling to arrange shipments with other carriers.Analysts predicted a strike by the union representing 3,500 pilots would harm industries far more than a strike by UPS employees did nearly a year and a half ago. Manufacturers that depend on 24- to 48-hour turnaround for components, repair parts and supplies could be hard hit. At press time, FedEx pilots were set to vote on authorizing a strike for Dec. 3.
FedEx held a 45 percent market share for overnight shipments last year, followed by Airborne Express at 23 percent and UPS at 21 percent. As with the UPS strike, distributors would not only be concerned with sending products on time, but with receiving inventory from their suppliers.
Some distributors said they learned from the UPS strike not to rely on a single airfreight carrier and had contracts with other companies in place.
"We do a good bit of air shipment with them and we also use a few other carriers, so we're confident if something else does happen, these two carriers can handle the volume," said Curt Hinchee, a transportation logistics administrative supervisor at Fairmont Supply Co. in Washington, Pa. Fairmont does nearly 40 percent of its air freight with FedEx.
During the UPS strike, Hinchee says his firm, like many others, learned "not to put our eggs in one basket." During the fall, Hinchee contacted other carriers that Fairmont is a preferred customer of to check if they could handle its needs. "Based on their confidence that they can, I feel confident," he said. I
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