FedEx Corporation (NYSE:FDX) will add 20,000 seasonal workers, just like last year, ahead of the fast approaching holiday season. These seasonal workers will handle the company’s holiday shipping, which is expected to increase by 13 percent or more.
The company believes that maintaining the same number of seasonal hires as last year is the best option, in light of its continued hires throughout 2012. It has particularly made hires in the Smartpost and Ground divisions. Executive Vice president of market development and corporate communication, T. Michael Glenn, remarked that the Smartpost and Ground division would handle the bulk of the holiday volume, meriting the company’s decision to maintain the same number of seasonal hires as last year.
The expected notable increase in shipping volume during the holiday season is not an isolated event. Towards most holiday seasons, shipping companies receive an abrupt increase in volumes because of last minute orders. Glenn even shared his insight on the last minute orders during an interview. “We always see a significant push for last-minute orders, and a lot of it has to do with procrastination, which, for FedEx, is a good thing during the holiday season,” he noted.
FedEx Corporation (NYSE:FDX) believes that it will handle in excess of 280 million shipments between Thanksgiving and Christmas. The shipping company also noted that the expected increase in shipping would be reflected in its fiscal 2013 performance. In fact, the impact of this increase was purposely included in its fiscal 2013 earnings outlook. Despite the expected increase in shipping, FedEx cut its earnings outlook for the second time this year, citing unmanageable energy prices, notable recession in key European economies, and slackening growth in China.
December 10th, which will mark the second Monday of the month, is expected to be a major day for the company. Typically, the second Monday of December, dubbed ‘Green Monday, usually signals the onset of the heaviest online shipping week of the year. FedEx Corporation (NYSE:FDX) expects close to 19 million shipments on this day, representing a 10 percent leap from last year.
FedEx Corporation (NYSE:FDX) and its rival, United Parcel Service, Inc. (NYSE:UPS), also benefit from their delivery contracts with key Internet retailers. In fact, a big percentage of the increase in shipment volume will come from the increased Internet and mobile purchases by retailers.
FedEx Corporation (NYSE:FDX), alongside other companies in its segment, is closely watched by varied stakeholders, because it acts as an indicator of consumer demand and economic health.