FedEx closes St. Johnsbury center

FedEx’s closure of its St. Johnsbury, Vermont, ship center is a small local event with a clear place inside a much larger company overhaul. The facility at 2176 Portland St has long been the town’s local FedEx counter, where customers could drop off packages, pick up held shipments and buy shipping supplies. Its disappearance leaves St. Johnsbury without a FedEx ship center, according to local reporting and FedEx’s own location page. FedEx has been shrinking parts of its station network as it combines its historically separate Ground and Express operations under what it calls Network 2.0. At its February 12, 2026 Investor Day, the company said it was pushing ahead with a multi-year transformation aimed at a more integrated U.S. and Canada surface network. (local.fedex.com) ### Why does one Vermont closure matter? St. Johnsbury matters because it shows how FedEx’s consolidation reaches smaller, lower-density markets as well as major metros. Supply Chain Dive reported in February that FedEx expects to close more than 475 stations by the end of 2027, after already closing more than 200, citing Scott Ray, FedEx’s chief operating officer for U.S. and Canada surface operations. (investors.fedex.com) The St. Johnsbury site is not a hub on the scale of Memphis or a major urban terminal. It is the kind of local node that gives a town a physical FedEx presence. When a site like that goes away, shipping still continues through the network, but the local storefront and staffed ship-center functions disappear. FedEx’s St. Johnsbury location page lists express and ground drop-off, hold-for-pickup service, packaging supplies and international shipping support. (supplychaindive.com) ### What is FedEx trying to do with Network 2.0? FedEx says Network 2.0 is designed to streamline pickup and delivery by reducing overlap between Ground and Express operations. On its Network 2.0 page, the company describes the effort as a long-term plan to make the network “more efficient and effective.” Scott Ray said at Investor Day that the logic is to avoid sending separate Express and Ground trucks into the same neighborhood on the same day. (local.fedex.com) Supply Chain Dive reported that FedEx says the overhaul has already cut pickup-and-delivery costs by 10% in markets where it has been rolled out. FedEx told investors on February 12 that the broader transformation is expected to deliver $2 billion in savings by the end of 2027. (fedex.com) The company also said about 25% of eligible average daily volume in the U.S. and Canada was then flowing through more than 360 facilities optimized for Network 2.0, with that figure expected to rise to 65% by the 2026 peak season. (supplychaindive.com) ### Does this mean FedEx is leaving the area entirely? FedEx has not indicated in the materials reviewed that it is leaving northeastern Vermont entirely. The more precise point is that St. Johnsbury is losing its local ship center. FedEx’s public location page still listed the address and services as of the latest crawl, which suggests the online directory may lag local closure timing. (supplychaindive.com) Inc. reported on July 30 that FedEx is closing shipping centers across multiple states this year and quoted a company spokesperson saying, “These decisions are never made lightly.” The spokesperson said FedEx was supporting affected employees through job placement assistance, relocation aid or severance. (local.fedex.com) ### What should local customers watch next? FedEx’s next public milestone is the continuing rollout of Network 2.0 through 2026 and 2027. The company says the initiative is being implemented market by market, and Supply Chain Dive reported the U.S. buildout is slated to be fully implemented by the end of 2027. For St. Johnsbury customers, the practical next step is to check FedEx’s location finder and service alerts for updated drop-off, hold-for-pickup and delivery options after the local center closes. (inc.com) FedEx’s investor site lists its next earnings call for October 28, 2026, when executives may provide further updates on the network overhaul. (fedex.com 1) (fedex.com 2)