FedEx Corp. plans to close nine shipping facilities in New York and one in Pennsylvania as its multi-year effort to integrate legacy express and ground delivery operations into one unified surface network enters its final phase, FreightWaves has learned.
Memphis, Tennessee-based FedEx (NYSE: FDX) completed its Network 2.0 consolidation program for Canada last April and has aggressively worked since then to optimize its terminal footprint in the United States. The concept aims to reduce expensive excess capacity and provide better service by streamlining pickups and deliveries so most neighborhoods are only served by one van each day.
The integrated parcel and logistics giant has so far optimized more than 360 ship stations to handle express and ground volumes, while closing over 200 locations. By the end of 2027, the company will have optimized more than 900 stations and will close over 475 locations, representing a 30% reduction in its national facility footprint, said Scott Ray, chief operating officer and president of U.S. and Canada surface operations at last month’s Investor Day event.
Nearly 25% of FedEx’s eligible U.S. and Canadian average daily volume now flows through hundreds of reprogrammed facilities, he said.
FedEx spokesman David Westrick disclosed the latest round of closures in an email to FreightWaves. Nine locations in New York are designated to end operations in June. They are:
Binghamton – 2123 Link Dr., Binghamton NY
Elmira – 358 Sing Sing Rd., Horseheads NY
Syracuse – 6313 Running Ridge, North Syracuse NY
Buffalo – 299 Cayuga Rd., Cheektowaga NY
Plattsburgh – 768 Route 3, Plattsburgh, NY
Ithaca – 747 Warren Rd., Ithaca, NY
Conklin – 299 Broome Corporate Pkway, Conklin, NY
Watertown – 22530 Fisher Rd., Watertown, NY
Utica – 115 Dry Rd., Oriskany, NY
Another facility, on Sathers Drive in Pittston, Pennsylvania, is slated to shut down on May 2. Sixty-three employees will be laid off, according to an advance notice the company filed with state labor agencies. The FedEx facility in nearby Wilkes Barre will take over the delivery functions carried out by the Pittston ship center. In the Scranton area there are currently three facilities providing service. Some Pittston workers will be offered other roles within the company, FedEx said.
Network 2.0 was conceived in late 2022 to align capacity with demand as e-commerce volumes normalized after the pandemic spike and FedEx began losing market share to Amazon and new, independent couriers. A large part of the demand decline stemmed from a conscious decision to deemphasize low-margin last-mile delivery and focus on heavyweight, international and long-distance package service.
