Latest news with #BrieCarere
Yahoo
15-07-2025
- Business
- Yahoo
FedEx Network 2.0: Tracking closures, layoffs across the US
This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. FedEx is making layoffs and closing facilities across the country as part of a plan to integrate its historically separate Ground and Express networks. The yearslong overhaul known as Network 2.0 aims to improve the carrier's pickup and delivery processes, trim costs and strengthen its position against competitors like UPS. Through that plan, FedEx is shuttering ship centers to streamline its operations and move toward a future without overlapping driver routes. The company has shuttered 100 stations as of May 31, and more closures are on the way, President and CEO Raj Subramaniam said on a June 2025 earnings call. FedEx says the plan won't hurt transit times and will reduce complexity for shippers, as they won't have to navigate separate Express and Ground pickups. But with such a wide-ranging initiative, customers still want to know what's changing even if delivery speeds are unaffected, EVP and Chief Customer Officer Brie Carere said in March 2024. To keep FedEx shippers updated on the company's consolidation efforts, Supply Chain Dive has compiled information on which facilities are closing or reducing staff due to Network 2.0, along with the number of employees impacted, in the map and table below. We will continue to update this page as new closures and workforce reductions are confirmed. Ship centers Supply Chain Dive has confirmed will close or reduce staffing since 2023. Keep track of the logistics giant's closures and staffing reductions, along with any disclosed employee impacts and effective dates, with this table. Use the search bar to filter by state. Editor's Note: If you know of a FedEx facility closure due to Network 2.0 that is missing from this list, send us an email at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-07-2025
- Business
- Yahoo
FedEx's 2025 peak season surcharges higher than last year
This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. FedEx announced 2025 peak season surcharges Tuesday that come at a higher rate than last year's holiday fees. The added levies begin Sept. 29 for packages that require additional handling, are oversized or unauthorized. On Oct. 27, three more fees – two of which FedEx introduced last year – covering various standard and expedited services will take effect. The carrier will also apply residential delivery charges for higher-volume shippers that see a jump in shipping activity. The amount of each holiday surcharge depends on the date, with prices peaking between Nov. 24 and Dec. 28. The added fees conclude on Jan. 18, 2026. Fee name Services affected Peak surcharge range per package Effective dates Additional Handling Surcharge U.S. Package Services, FedEx International Ground shipments $8.25 to $10.90 Sept. 29 - Jan. 18, 2026 Oversize Charge U.S. Package Services, FedEx International Ground shipments $90 to $108.50 Sept. 29 - Jan. 18, 2026 Ground Unauthorized Package Charge FedEx Ground, FedEx Home Delivery and FedEx International Ground shipments $490 to $545 Sept. 29 - Jan. 18, 2026 Demand Surcharge FedEx First Overnight, Priority Overnight, Standard Overnight, 2Day, 2Day A.M., Express Saver (excluding One Rate packages) $1.05 to $2.10 Oct. 27 - Jan. 18, 2026 Demand Surcharge FedEx Ground residential shipments, FedEx Home Delivery residential shipments $0.40 to $0.65 Oct. 27 - Jan. 18, 2026 Demand Surcharge FedEx Ground Economy Package Services $2.20 to $3.55 Oct. 27 - Jan. 18, 2026 Demand — Residential Delivery Charge* Ground, Home Delivery, First Overnight, Priority Overnight, Standard Overnight, 2Day, 2Day A.M., Express Saver (excluding One Rate packages) $1.55 to $8.75 Oct. 27 - Jan. 18, 2026 *Applies to enterprise-level customers who ship more than 20,000 residential and Ground Economy packages, with the price based on how much their volume deviates from their 'baseline' shipping activity. FedEx said it implements demand surcharges in times when capacity is squeezed and operating costs jump due to elevated volume, which is often the case throughout the holidays. For instance, FedEx picked up nearly 24 million packages on Cyber Monday 2024, 70% more than the average day, EVP and Chief Customer Officer Brie Carere said on a March earnings call. The additional fees could pressure shippers' bottom lines during the holiday shopping season. Actions FedEx customers can take include securing demand surcharge discounts or waivers, weighing the cost impact of the fees with no changes and modeling volume transition scenarios to other carriers, LPF Spend Management founder Nate Skiver said in a LinkedIn post on Wednesday. UPS has also levied peak season surcharges for years. As of Thursday morning, the company hasn't made an announcement on 2025 holiday fees. Recommended Reading FedEx bumps up fuel surcharge rates
Yahoo
02-07-2025
- Automotive
- Yahoo
FedEx establishes automotive vertical in B2B shipping push
This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. FedEx created an automotive vertical within its organization as part of its efforts to expand its business-to-business customer base and revenue, EVP and Chief Customer Officer Brie Carere said on a June 24 earnings call. The vertical features a dedicated leadership team and is "off to a strong start," Carere said. She noted that FedEx landed a spot on General Motors' 2025 Supplier of the Year list for the 21st year in a row. "Our focus for fiscal year '26 will be growing within the $18 billion high-margin segment of the North American automotive market, a subsector focused on premium services that supports automotive supply chain," Carere said. FedEx is looking to be a logistics partner for more automotive companies, as auto shipments can be more profitable on a per-unit basis than retail or e-commerce deliveries. The company's pursuit comes as the auto industry faces a range of supply chain challenges, including fluctuating tariff and trade policies. FedEx is up for the task of helping all 3 million of its shippers, automotive or otherwise, adapt their businesses to tariff changes, President and CEO Raj Subramaniam said. He noted that FedEx can flex its global capacity to meet evolving demand trends, as seen in May when the company reduced its Asia-to-Americas air cargo capacity. "This uniquely positions us to be a valuable partner to our customers as they navigate shifting demand trends, evaluate the impact of tariffs on their businesses and adjust their supply chains accordingly," Subramaniam said. FedEx is not only prioritizing growth among auto shippers. The carrier is also seeking more volume from healthcare companies, small and medium-sized businesses, shippers in Europe and airfreight customers. Carere said FedEx exited fiscal year 2025, which ended May 31, with $9 billion in healthcare-related revenue as it tries to catch rival UPS in the category. FedEx achieved a healthcare milestone in Q4 by landing a Center of Excellence for Independent Validators in Pharmaceutical Logistics certification for its hubs and ramps, the CCO added. "As we look to further penetrate the high-margin health care segment, I am confident this achievement will unlock even more opportunity for us," Carere said. Recommended Reading FedEx targets growth in 4 customer segments Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-06-2025
- Business
- Yahoo
FedEx Faces $170M in Tariff Headwinds as US Cracks Down on De Minimis
Tariff-related headwinds are expected to deliver a $170 million hit to FedEx in the first quarter, primarily as the company adapts to revenue pressures out on the trans-Pacific trade lane. FedEx chief customer officer Brie Carere said in an earnings call Tuesday afternoon that China-to-U.S. volumes 'deteriorated sharply' in early May, resulting in flat international export revenue for the fourth quarter. More from Sourcing Journal China Port Volumes Hit Record Highs on US Tariff Truce WTO to Intervene in Trade Disputes Between Canada and China Footwear Firms Rejiggering Supply Chains Will See Long-Term Benefits 'Within that, the vast majority is the impact of de minimis,' said Carere, referring to the recently closed-off trade exemption for low-value packages entering the U.S. from China. Businesses that had supply chains rooted in China, like Shein, Temu and Amazon, all used de minimis to ship goods into the U.S. tax-free via air freight before the Trump administration banned the provision as of May 2. The bilateral China-to-U.S. lane represents around 2.5 percent of consolidated revenue at FedEx and is the company's most profitable intercontinental lane, said chief financial officer John Dietrich. The headwinds have been reflected in FedEx's first quarter guidance with range of flat revenue to 2 percent revenue growth, and an adjusted earnings per share range between $3.40 and $4. Company stock fell 5 percent in after-hours trading Tuesday on the muted earnings guidance. 'Internationally, we expect revenue from the China-to-U.S. lane to remain pressured consistent with what we saw exiting Q4,' Carere said. The Memphis, Tenn.-based carrier did not issue guidance for revenue and earnings estimates in 2026. However, the company remains optimistic it can be well prepared to continually alter shipping routes to match demand. FedEx has shifted its air operations substantially as it adapts to the tariff-driven demand environment and implements its 'Tricolor' network redesign strategy, having reduced capacity on the Asia-to-Americas lane by more than 35 percent in May compared to April. 'The patterns are changing as we speak,' said FedEx CEO Raj Subramaniam in the call. 'Clearly, we are seeing growth from Southeast Asia, for example, Vietnam.' Subramaniam highlighted the April launch of the company's first direct flight from Singapore to Anchorage, Ala., which operates six times a week and allows shipments picked up in Singapore, Vietnam, Malaysia and Thailand on Saturday to arrive in the U.S. on Monday. Another $120 million in headwinds from the expiration of FedEx's air cargo contract with the U.S. Postal Service (USPS) is a major factor in the shifting air freight capacity. In the fourth quarter, the company took a $21 million impairment charge upon retiring 12 aircraft from its rotation. Over the last three years, FedEx has removed a net 31 jet aircraft from its fleet, a 7 percent reduction versus fiscal year 2022. This brings total aircraft at the company to 698, when including feeder planes operated by partner airlines. The reevaluation of the air fleet comes as the courier is two years into a wider $6 billion cost-cutting and consolidation plan. FedEx is targeting $1 billion in cost savings through its upcoming 2026 fiscal year after hitting its $4 billion Drive cost reduction goal through 2025. As part of the company's Network 2.0 delivery network consolidation embedded within Drive, Subramaniam revealed that FedEx is planning on removing roughly 30 percent of the company's service facilities by the completion of the initiative at the end of 2027. Thus far, Network 2.0 has resulted in the closure of 100 stations and the integration of 290 stations. The company says it is still looking to hit the $2 billion savings goal by the conclusion. Roughly 2.5 million in average daily volume flows through Network 2.0-optimized stations 'The best way to describe it is that we're on track. This was a long game exercise and initiative,' said Dietrich. 'We're seeing the 10 percent improvement on our PUD,' referring to reduced pickup and delivery costs in markets that have fully rolled out Network 2.0. The package delivery giant expects to share more updates on the Network 2.0 plan at its investor day in early 2026. As for the fourth-quarter results, FedEx generated revenue of $22.2 billion, up 1 percent from the year prior, on net income of $1.65 billion, or $6.88 per share. Both revenue and earnings exceeded Wall Street expectations. Total average daily package volume climbed 5 percent in the quarter to 16.8 million packages per day. U.S. domestic average daily package volume increased 6 percent to 13.8 million, while ground delivery volumes jumped 10 percent to 6.9 million daily parcels on average. Internationally, export volumes out of the U.S. increased 3 percent to 1.1 million parcels. For the soon-to-be spun off FedEx Freight segment, revenue declined 4 percent to $2.2 billion, while total average shipments dipped 1 percent to 92,100 per day. The earnings report followed the death of FedEx chairman and founder Fred Smith just three days earlier. Smith launched FedEx, then Federal Express, in 1973, and served as the CEO of the company until his retirement in 2022. FedEx named Brad Martin, who was recently appointed as chairman of FedEx Freight, to replace Smith in the chair position. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-06-2025
- Business
- Yahoo
FedEx Freight operating income drops 6%
This story was originally published on Trucking Dive. To receive daily news and insights, subscribe to our free daily Trucking Dive newsletter. FedEx Freight noted LTL market weakness persisting, notably in the industrial sector, for quarterly results released Tuesday. 'We have not seen a marked improvement in the industrial economy,' EVP and Chief Customer Officer Brie Carere said on an earnings call. Operating income for the segment fell 6% to $477 million, according to an investor presentation, as the business noted lower fuel surcharges, reduced weight per shipment, higher costs for staff wages and benefits, and one fewer operating day. FedEx Freight LTL shipments were flat year over year in March, down 2% YoY in April and down 1% YoY in May, the presentation reported. Nevertheless, a 'better-than-expected May more than offset a softer than expected April,' Carere said. The improvement for the quarter helped deliver the best operating margin over the past 12 months with a 20.8% operating margin. That was a slight slip from the 21.2% operating margin YoY, though. The segment also posted revenue that beat expected analyst projections, $144 million higher than Bank of America Global Research's forecast. FedEx Freight, aiming for a spinoff in June 2026, also sold a facility that gave the business a $33 million gain, according to the presentation. The property wasn't identified, but parking and freight network Outpost recently acquired a 27-acre FedEx terminal in Dallas. The site features a 154-door cross-dock, a 9-bay drive-thru maintenance shop, 800 marked parking spots and office space, the trucking service startup said in a news release. FedEx Freight has hundreds of terminals but has reconfigured operations throughout parts of the U.S. and also sold off property. That's given competitors, such as Knight-Swift Transportation Holdings's growing LTL network, some opportunities to expand. Recommended Reading LTL carriers see tonnage drop amid low shipper demand Sign in to access your portfolio
