FedEx Pushes Safety Agenda After Accidents Lead to Higher Costs

FedEx Corp. is pressuring delivery contractors to improve safety after mounting accidents helped trigger a near-tripling of insurance costs over the decade.

FedEx is requiring contractors that deliver packages on behalf of the company’s Ground unit to install vehicle cameras and sensors, enhance training and pay penalties if they incur too many accidents, according to FedEx memos to contractors. A low safety score can also expose these delivery companies to competing bids for their routes and jeopardize their entire business.

The safety crusade is key to Chief Executive Officer Raj Subramaniam’s plan to combine the company’s Ground and Express ...