FedEx

In a Form 8-K filing with the United States Securities Exchange Commission earlier today, Memphis-based global freight transportation and logistics services provider FedEx announced a workforce reduction plan in Europe as part of the company’s ongoing measures to reduce structural costs. Company officials said that this plan will impact between 1,700-to-2,000 FedEx Europe-based employees serving in back-office and commercial functions.

Following an April 2023 announcement, in which Memphis-based global freight transportation and logistics services provider FedEx said that, effective June 2024, it will consolidate all of its operating companies into a single organization, CEO Raj Subramanian offered up some insight into the initiative at investment firm Bernstein’s 40th Annual Strategic Decisions Conference this week.

Three of our top parcel industry sources offer their takes on the most consumer-facing segment of freight transportation and logistics. They say that while market conditions continue to affect how carriers approach the market, shippers are leveraging the benefits of lower package demand in the form of better pricing.

Following the news that UPS has been awarded what it labeled a “significant air cargo contract” by the United States Postal Service (USPS), which used to be handled by its biggest competitor, FedEx, there has been no shortage of feedback and opinions on the development.

Atlanta-based global freight transportation and logistics services provider UPS said earlier today it has been awarded what it labeled a “significant air cargo contract” by the United States Postal Service (USPS). UPS officials said that this contract takes effect immediately while also expanding the existing relationship between UPS and USPS. And the company added that after a transition period, UPS will be the primary air cargo provider for USPS, moving the majority of USPS’s United States air cargo.

When Memphis-based global freight transportation and logistics services provider FedEx and global e-commerce giant Amazon ended their business relationship in 2019, one could have likely assumed, at the time, that the breakup was permanent.

Memphis-based global freight transportation and logistics services provider FedEx rolled out a new data-driven commerce platform, which it said connects the entire customer journey. Entitled fdx, company officials explained that it provides various customer benefits, including: growing demand; increasing conversion; optimizing fulfillment; and streamlining returns.

The current state of the business relationship between Memphis-based freight transportation and logistics services provider FedEx and the United States Postal Service (USPS) received a fair amount of attention on the former’s fiscal second quarter earnings call late last year.

Quarterly revenue—at $22.2 billion—was down 2.6% annually, and operating income—at $1.42 billion—increased 14.8%. Net income, at $1.01 billion, topped the $820 million recorded for the same quarter a year ago. Adjusted earnings per share came in at $3.99, up 20% annually while falling short of Wall Street expectations, at $4.19.

ShipMatrix observed that based on its data of millions of parcels shipped during Cyber Week pointed to online orders being delivered “at levels better than in the last several years,” with the respective OTPs for FedEx, UPS, and the USPS, coming in at 97.8%, 98.0%, and 95.2%, respectively.

Effective December 26, UPS said that rates for UPS Ground, UPS Air, and International services will increase by an average net 5.9%, which are in line with FedEx’s planned 2024 rate increases. For air cargo, effective December 3, UPS Air Freight rates within and between the U.S., Canada, and Puerto Rico will increase by an average net 6.3%.  

A sure sign that the holiday season getting closer each day are the respective announcements made by carriers, transportation and logistics services providers, and shippers alike, announcing their “help wanted” signs have been hung, as they look for seasonal workers.

Quarterly revenue—at $21.7 billion—was down 7% annually, and operating income—at $1.49 billion—increased 25%. Net income, at $1.08 billion, topped the $875 million recorded for the same quarter a year ago. Adjusted earnings per share came in at $4.23, up 24% annually and topping Wall Street expectations, at $3.70.

In this podcast, Jeff Berman, Logistics Management and Peerless Media Supply Chain Group News Editor Jeff Berman interviews Rick Watson, Founder and CEO, RMW Commerce Consulting.

Keeping in line with recently announced rate increases made by its chief rival FedEx, Atlanta-based global freight transportation and logistics services provider UPS this week announced its own 2024 rate increases this week, which are set to go into effect on December 26.