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FedEx Is Charging E-Commerce Retailers More

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FedEx’s margins fell in Q3 as the firm strains to deal with the holiday surge, and the shipping giant is looking at online retailers to make up the difference.

The company is pressing some of its customers to pay higher prices, and in a show of force, dropping those who refuse to pay, the Wall Street Journal reports. Expenses outpaced revenue for both FedEx Ground and FedEx Freight businesses last quarter, with the firm’s operating profit margin sliding to 7.8% from 9.1% last year.

Execs explain the results by pointing to investments in four huge distribution hubs and 19 automated sorting stations, saying they are confident profit margins will pick up over the rest of the year as more hubs start to open. [WSJ]