FedEx Forced To Suspend Some Services Due To Omicron Staff Shortages

The degree to which Covid's impact on staff shortages in manufacturing, warehousing and delivery has affected products' availability for consumers has been under-reported because it is not as engaging as more politically divisive stories. JL   

Paul Ziobro reports in the Wall Street Journal:

Fed Ex said its economy domestic Express freight services—2Day Freight and 3Day Freight—were  suspended. The company resumed international economy Express freight pickups. The rapid spread of the variant had caused a temporary shortage of available crew members and operational staff in its Express air network. FedEx has struggled throughout the past year to staff its delivery network due to the pandemic and tight labor market. Higher pay, more paid time off, flexible scheduling and other incentives have helped FedEx to attract and retain enough workers to staff operations during the holidays.

FedEx Corp. FDX -0.65% said it had restored some of its airfreight services that had been suspended last month due to staffing shortages caused by the Omicron variant.

In an advisory on its website, the delivery giant said that on Monday it had resumed international economy Express freight pickups. The company said its economy domestic Express freight services—2Day Freight and 3Day Freight—were still suspended.

FedEx had previously warned that the rapid spread of the variant had caused a temporary shortage of available crew members and operational staff in its Express air network and the company was adjusting operations to minimize delays.

Airlines and other companies have struggled with worker shortages in recent weeks that led to thousands of flight delays this winter.

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FedEx has struggled throughout the past year to adequately staff its vast delivery network due to the pandemic and tight labor market. Company executives said in December that higher pay, more paid time off, flexible scheduling and other incentives have helped FedEx to attract and retain enough workers to staff operations during the busiest time of the year.

Rival United Parcel Service Inc. on Tuesday reported quarterly results showing it is making more money shipping fewer packages and said it was boosting its dividend payout.