And even customers who stay with FedEx may shift from express shipments to less expensive, slower services, he said.
Demand for air express shipments has fallen as customers turn to slower, less costly methods of delivering goods.
Growth in its ground and international-domestic express units and from a postal service deal was "substantially offset by a continued decline in U.S. domestic express shipments," FedEx said.
The contract currently generates about 8,000 express shipments monthly, according to a spokesman for DHL, a transport company that makes hundreds of millions of deliveries a year within the United States.
World's largest private shipping firm lost $880 million in second quarter as customers shunned expensive express shipments, which make up the majority of company's revenue.
Whatever you call it, the expansion of this practice from manufacturing to the higher-paying technical and white-collar levels is the latest big threat to employment in the U.S. Years ago, when concern was being expressed about the shipment of factory jobs to places with slave wages, hideous working conditions and even prison labor, proponents said there was nothing to worry about.
A few years ago in Chicago, agents X-rayed an express-mail shipment of "shoes," with a declared value of fifty dollars, that turned out to be the skulls of Chinese dinosaurs.
They express that the model ignores the costs of shipments from the supplier to the buyer and plans the incoming and outgoing flows at the supplier in a manner that overstates the inventory needed.
"We have just received the recent shipment of books from your organization and cannot express out thanks," the volunteer wrote.
