Top 5 Challenges Facing FedEx P&D Contractors in 2025 (And How to Stay Ahead)

The FedEx Ground P&D business continues to evolve — fast. With increasing pressure on margins, rising operational costs, and growing expectations from FedEx, contractors are constantly adapting just to stay afloat. At Fleet Wage, we work with hundreds of contractors across the country and stay close to the biggest pain points they face.

Here are the top 5 challenges FedEx P&D contractors are dealing with in 2025, and strategies to stay ahead of the curve.

1. Rising Labor Costs and Driver Retention

What’s happening:
Wages have gone up. With Amazon, UPS, and local delivery companies offering competitive pay and perks, retaining qualified drivers has become a full-time job.

What to do:

• Offer transparent pay structures (per-stop + bonuses)
• Use real-time driver reports to build trust and accountability
• Recognize top performers regularly

Fleet Wage helps automate payroll and driver reports, giving you tools to retain drivers with confidence.

2. Fuel Volatility and Surcharges

What’s happening:
Fuel prices remain unpredictable, and while FedEx offers fuel surcharge adjustments, they don’t always align with real-world costs for every terminal or region.

What to do:

• Track fuel usage by truck and driver
• Monitor unassigned fuel charges weekly
• Implement fuel efficiency contests or coaching programs

Fleet Wage flags fuel charges not tied to a driver or truck, so you can keep control of your margins.

3. Increased Compliance and Audit Risk

What’s happening:
Contractors are seeing more scrutiny around hours worked, safety metrics, payroll records, and worker classification.

What to do:

• Keep digital logs of payroll and write-ups
• Document PTO, corrective actions, and bonuses clearly
• Use software to standardize wage calculations

Fleet Wage stores every pay period’s breakdown and violation logs, ready for any audit.

4. Schedule and Route Optimization Pressure

What’s happening:
Service expectations keep rising — even if the volume doesn’t. FedEx is tightening route expectations while customer patience shrinks.

What to do:

• Build schedules faster with templates and auto-assign features
• Track which drivers are consistently late or inefficient
• Adjust training schedules to plug performance gaps

Our smart scheduling feature lets you build weekly rosters in minutes and identify routes that need attention.

5. Lack of Technology Built for FedEx Contractors

What’s happening:
Most payroll, dispatch, and HR tools weren’t made for FedEx contractors — they’re built for retail or generic businesses. That leads to errors, wasted time, and frustration.

What to do:

• Look for solutions that integrate with Charge Statements, WSWs, and stop counts
• Automate payroll and bonus logic
• Streamline write-ups, driver reporting, and PTO tracking

Fleet Wage was built by FedEx contractors, for FedEx contractors — with every feature made for this exact business.

Final Thoughts

2025 is shaping up to be a demanding year for FedEx P&D contractors — but the right tools and strategy can make all the difference. At Fleet Wage, we’re committed to giving contractors back control of their operations and their time.

🔍 Want to see how other contractors are solving these problems?
Schedule a free demo — and let us walk you through how top operators are using Fleet Wage to stay ahead.