FedEx

Soon after United States Postal Service (USPS) Postmaster General Louis DeJoy notified the Postal Service Board of Governors “it is time for them to begin the process of identifying his successor” on February 18, reports surfaced late last week that the White House intends to make major changes to the organization.

According to a new FedEx report, more than 80% of consumers prioritize free shipping, and 76% say it influences where they shop. But while customers expect it, free shipping is anything but free. Someone is footing the bill. The question is: who?

In its data on millions of parcels shipped during this period in 2024, ShipMatrix found that the on-time performance (OTP) for the three national carriers—FedEx, UPS, and the United States Postal Service (USPS), came in at 91.8% for FedEx, 96.5% for UPS, and 90.4 for USPS.

Memphis-based global freight transportation and logistics services provider FedEx recently announced that Lance Moll, president of the company’s less-than-truckload (LTL) subsidiary, FedEx Freight, will retire from his position, effective January 31, at which point shift to an executive advisor role.

In its fiscal second quarter earnings announcement issued earlier today, Memphis-based global freight transportation and logistics services provider FedEx said that the company’s Board of Directors, following a review of the role of its less-than-truckload (LTL) subsidiary, FedEx Freight, in its portfolio, has elected to make a push to fully separate the unit into a new publicly-traded company.

Entitled “Bridging the e-Commerce Divide: Meeting Consumer Demands with Merchant Offerings,” a key takeaway cited by FedEx observed how 75% of consumers prioritize free shipping over fast shipping, which it said represents a major consumer behavior trend, as well as the “growing importance of free shipping in the online shopping experience.”

FedEx said that this LEED-certified facility is comprised of 1.3 million square-feel (MSF) across four levels, with 11 miles of conveyor belt, a space dedicated to moving bulky, non-conveyable shipments, and sort 56,000 packages per hour.

Companies like Amazon and FedEx are investing in autonomous drones and robots to streamline last-mile deliveries.

When top executives at high-profile logistics companies share a stage together, it stands to reason that their opinions and insights will be valuable. That was certainly the case earlier this month, when Hamid Moghadam, co-founder, chairman, and CEO of San Francisco-based real estate investment trust Prologis, and Fred Smith, founder and executive chairman of Memphis-based freight transportation and logistics services provider FedEx, took the stage in London at Prologis’s annual Groundbreakers conference.

As Hurricane Milton reached landfall last night in various parts of coastal Florida, safety is paramount for everyone, of course. That said, Logistics Management has provided an overview below of what is happening with various freight transportation carriers, providers and ports. The statements below are directly from company websites to keep you informed in a brief and concise manner. Please be careful out there for the next few days.

Trade downs to more cost-effective services were a key factor in declining fiscal first quarter earnings, Memphis-based global freight transportation and logistics services provider FedEx reported late yesterday. Quarterly revenue, at $21.6 billion, was down 0.5% annually, and operating income, at $1.21 billion, was off 24%. Earnings per share, at $3.60, were down from $4.55 a year ago and fell short of Wall Street expectations of $4.64.

Following the lead of UPS in July, fellow parcel and express delivery services providers FedEx and DHL Express introduced demand-based, or peak, surcharges earlier this month, for the fall peak season.

The new fees, starting in October, will apply to various shipping and fulfillment services during the peak season.

With this announcement, FedEx said that FICP will now be made available for e-tailers to send shipments to United States and European destinations, and it is already currently available within Asia-Pacific markets. And the company added that it will be made available to e-tailers in China, Hong Kong SAR, and Japan, with other Asia Pacific markets set to be added later in 2024.

With its long planned-out focus on consolidating its operating companies into a single organization, the heavy lifting is now under way for Memphis-based global freight transportation and logistics services provider FedEx.