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FedEx Facility Consolidation: What Businesses Need to Know

  • Writer: FBD GROUPS
    FBD GROUPS
  • Jul 16
  • 3 min read

Updated: 3 days ago

A FedEx Express delivery truck parked on a U.S. city street, viewed through a metal chain-link fence, with a breaking news overlay and the FBD GROUPS logo, representing logistics network updates and facility consolidation.

FedEx is gradually integrating its U.S. Ground and Express facilities.

 

Businesses that use FedEx should check whether pickup times, driver routes, or package handoff procedures at their warehouses have changed.

 


Why Is FedEx Closing Some Facilities?


FedEx has historically operated its Ground and Express networks separately. In markets served by both networks, this created overlapping facilities, staff, vehicle routes, and management costs.

 

To reduce that duplication, FedEx launched Network 2.0 in 2022.

 

The company is consolidating pickup, delivery, capacity, and drivers where possible to lower costs, improve service, and compete more effectively with UPS and other carriers.

 

As the rollout continues, pickup schedules, driver routes, facility contacts, and cost calculations may change by market.


Labeled cardboard boxes ready for outbound shipping on a warehouse workstation, with high-bay storage racks in the background. Equipped with a barcode scanner and a computer monitor displaying the WMS package tracking system, showcasing FBD GROUPS' professional and efficient U.S. downstream logistics, warehousing, and inventory management.

 


The Impact of FedEx Integrating Ground and Express


FedEx used to operate Ground and Express separately. Ground mainly handled standard ground parcels, while Express mainly handled expedited and air shipments.

 

If a customer shipped both standard and expedited packages, that customer might have had to deal with different drivers and different service processes.

 

In the future, the same FedEx driver may be able to pick up and deliver different types of packages for the same customer, even if the customer uses different FedEx services.

 

A FedEx Ground delivery truck parked on a U.S. street. FedEx's Network 2.0 initiative aims to merge its Ground and Express logistics networks, reducing overlapping facilities and routes.

As of February 2026, FedEx had already closed more than 200 facilities.

 

FedEx expects Network 2.0 to close more than 475 facilities by the end of 2027 and generate $2 billion in savings. Some affected employees are being transferred or reassigned, while other positions are being eliminated.

 

USA Today's  WARN tracker shows recent FedEx notices across several states:

  • Maryland: 25 employees affected in Salisbury.

  • New Jersey: 50 employees affected in Union.

  • Pennsylvania: 63 employees affected by a facility closure in Pittston.

  • New York: 43 employees affected in the Capital Region.

  • Arizona: 101 employees affected by a facility closure in Phoenix.


A FedEx delivery driver carrying packages to a destination. With Network 2.0 implementation, FedEx driver routes, pickup times, and package handoff procedures may change. Business warehouses must monitor email notices and update SOPs.

 


How Does Network 2.0 Affect FedEx Pickup?


FedEx says customers will not see changes to transit times for existing parcel services. With improved efficiency, some packages may even arrive faster.

 

FedEx tracking options and shipping labels also have no new changes.

 

During the Network 2.0 transition, FedEx will notify customers by email if package pickup changes.

 

For shipping businesses, this means the warehouse-facing details may still change, including pickup time, driver arrangement, and package handoff method.

 


Changes Businesses Should Pay Attention To

Change

What Businesses Should Do

Pickup times may change during Network 2.0. FedEx will notify customers by email if this happens.

Check FedEx emails and confirm regular pickup times with a FedEx sales representative. Do not rely only on the driver’s past arrival time.

In some markets, the same driver may handle Express and Ground packages.

Confirm whether Express, Ground, and Return packages still need separate handoff areas. Follow local driver instructions and FedEx account notices.

Some former FedEx Ship Center locations are no longer listed as current customer locations. Alternatives may include FedEx Office, Walgreens, Dollar General, Office Depot, or Authorized ShipCenter.

Check FedEx’s official website regularly for current available locations.

 

FedEx Facility Changes Mean Businesses Should Check U.S. Downstream Logistics


As FedEx integrates its U.S. Ground and Express networks, businesses should check whether their U.S. fulfillment process is still smooth, flexible, and cost-efficient.

 

Stacked cardboard boxes in a warehouse ready for U.S. local fulfillment and delivery. FBD GROUPS provides cross-border e-commerce sellers with a comprehensive set of U.S. downstream logistics services, including customs clearance, warehousing, inventory management, and repair.

Carrier pickup is only one step. Before packages reach FedEx or UPS, goods still need customs clearance, container pickup, warehouse receiving, inventory syncing, sorting, delivery, returns, and possible repair handling.


For businesses with high order volume, many SKUs, or frequent returns, small communication gaps can quickly create delays, extra labor, and higher costs.


FBD Logistics helps businesses connect customs clearance, warehousing, inventory, delivery, returns, and repair into one U.S. fulfillment process, supported by its WMS system and long-term cooperation with carriers such as FedEx and UPS.

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