FedEx (NYSE: FDX) is down 1.33% in pre-market trading on Monday as it failed to deliver all its packages in time for Christmas.
Last Friday, FedEx said that it planned to run deliveries on Christmas day to complete shipments. This meant that some drivers had to work extra hours on Christmas day to help the company with delayed shipments.
FedEx said that the delays were attributed to the severe weather in the Southeast and Midwest regions of the country. Memphis, in which FedEx’s major air hub is located, was affected by severe storms before Christmas.
In addition to the poor weather, the boom of e-commerce sales was another reason for the delay shipment. About $11 billion was spent online between Thanksgiving and Cyber Monday alone.
“FedEx Express continues to run limited delivery operations in some markets to deliver shipments that couldn't be delivered before Christmas due to unforeseen volume and severe weather in some areas of the country,” a FedEx spokeswoman said Friday afternoon.
This was not the first time that FedEx ran into delays during the holiday season. Some retailers warned the customers that they might experience shipment delay when they use FedEx for shipment. For example, Pacific Sunwear sent emails to customers about the possible delay shipment for FedEx last Monday.
Nowadays more and more people shop online for Christmas presents. If the delay shipment keeps happening, customers may lose confidence in FedEx and turn to UPS, FedEx’s biggest rival.