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Because of spiraling inflation and a doubling of fuel prices in the last year, contractors who work for FedEx Ground are in trouble, according to Route Consultant Founder and President Spencer Patton. Tennessee-based Route Consultant is the largest contractor for FedEx Ground and works with about one-third of all FedEx drivers. "Really what I've been advocating and really making the public aware of is that we're in enormous financial distress," said Patton in a recent interview with the Fox Business channel. Patton has threatened to shut down his business on Nov. 25, also known as Black Friday, the day after Thanksgiving, which is one of the busiest shopping days of the year.

FedEx Ground maintains a network of about 6,000 small trucking company owners who each manage between 10 and 25 employees. Contracts are renegotiated on a regular basis, but Patton fears that it may not be enough for many companies.

He has renamed Black Friday as Purple Friday, in a nod to FedEx colors. Patton says he is sounding the alarm for all the drivers in the network. "The person coming to your door wearing a FedEx uniform, driving a FedEx truck is not actually a FedEx Ground employee," Patton said. "And they're the ones that are actually delivering all of the packages across the United States."

Patton is asking FedEx Ground to forego any increase in its profits so that it can help prop up contractors who are struggling in the current market conditions. Patton also fears that FedEx Ground will drop some contractors if they demand too much. "The risk is that if we don't do exactly what FedEx Ground asks us to do, then FedEx Ground, being the $60 billion business, can say, ‘Sign this agreement or we'll find somebody else that will,’" said Patton.

Patton has warned that if contractor’s issues are not solved in the short term, problems will continue into the all-important and lucrative holiday season when shopping and deliveries are at their highest. "As I speak for my own independent business, I need financial help. And some 6,000 other FedEx Ground contractors need the same," Patton said. "We've seen FedEx Ground in their most recent earnings report on June 23, FedEx highlighted a 30% increase to their margins as a result of passing through fuel surcharges to the U.S. consumer, but not passing through those same surcharges to contractors. The very ones consuming the fuel."

Patton has recently formed the Trade Association of Logistics Professionals, which he notes, is open to all contractors working on behalf of transport and logistics businesses. Within that group there will be a 10-person committee that will help with negotiations for FedEx contractors.

FedEx Ground Contractors Want More Support as Inflation and Cost of Fuel Price Soars