Introduction to International Express FedEx and Amazon's land transportation service contract will not be renewed:
FedEx said on Wednesday that it will terminate its land express delivery contract with Amazon at the end of August and will not renew it.
FedEx and Amazon just ended the air contract two months ago. At the time, FedEx said in a statement, "This is a 'strategic decision' that will not affect other existing contracts with Amazon, including the parcel delivery business in markets outside the US." According to FedEx In terms of data, Amazon is not a big customer of FedEx, accounting for only about 1.3% of total revenue in 2018.
Amazon's representative said in an e-mailed statement, "We respect FedEx's decision and thank them for their services to Amazon customers over the years."
The company announced that it plans to open the 15th logistics center in Pennsylvania in Pittsburgh for the selection, packaging and transportation of larger commodities such as sports equipment, outdoor furniture, kayaking and larger household items.
Amazon also announced plans to open two robotic distribution centers in Ohio, which will add more than 2,500 jobs to the state.
Amazon’s stock price has not changed, and FedEx’s stock has fallen by less than 1%.