Latest news with #FedExExpress
Indianapolis Star
02-07-2025
- General
- Indianapolis Star
Will mail get delivered on the Fourth of July? Do UPS and FedEx deliver on Independence Day?
The Fourth of July is this week. Like most federal holidays, some services will be disrupted and stores may be operating under different hours. Here's what to know about your regular mail delivery on July 4. No, mail will not be delivered on Independence Day as it is a federal holiday. According to the FedEx holiday service schedule, FedEx Express will have modified service on Thursday, July 3, while other services will remain open. But on Friday, July 4, most services will be closed. FedEx Custom Critical will still operate. Some FedEx Office locations will have modified hours on the holiday, but others will be closed; check with your local store for more information.
Yahoo
25-06-2025
- Business
- Yahoo
FedEx navigates tariff swings to modest profit gain
FedEx credited its Drive cost-cutting initiative and higher export volumes at the Express division with generating better-than-expected quarterly results during a period of tariff turmoil and is targeting another $1 billion in savings in the current fiscal year. FedEx (NYSE: FDX) released fourth-quarter earnings late Tuesday as the company mourned the passing on Saturday of founder Fred Smith. The board of directors on Monday promoted Brad Martin to succeed Smith as chairman. Revenues at FedEx inched up less than 1% year over year in the fourth quarter, ended May 31, to $22.2 billion, while adjusted operating income gained 8% to $2 billion. Revenue was $200 million ahead of Wall Street's consensus. Diluted earnings per share of $6.07 beat analysts' estimate of $5.85 per share. The parcel and logistics giant said it achieved its two-year Drive goal of permanently eliminating $4 billion in structural costs compared to fiscal year 2023, including $2.2 billion last year. As part of the restructuring, FedEx has been implementing a workforce reduction of 2,000 persons in Europe, announced last June, which will lead to about $150 million in annual savings by fiscal year 2027, CEO Raj Subramaniam said. Increased U.S. and international export volume at FedEx Express and higher base yields at each transportation division also helped to boost profits. Express division revenue increased 1% to nearly $19 billion on 6% and 4.7% increases in domestic and international package volume, respectively. Gains at FedEx Express were partially offset by higher purchased transportation and wage rates and the expiration of a major U.S. Postal Service contract last September. Results at FedEx Freight, the largest less-than-truckload carrier in the nation, fell 4% to $2.9 billion due to lower fuel surcharges, reduced weight per shipment, higher healthcare costs and increased wage rates, FedEx said. The primary challenge, however, is continued weakness in the industrial sector. Operating income was down 6%. The division made a $33 million gain on the sale of a terminal, which accounted for nearly a third of the earnings beat. Year-over-year volume declines moderated sequentially, with average daily shipments down 1% in the fourth quarter compared to down 5% in the third quarter and down 8% in the second quarter. Average daily shipments actually increased 8.3% sequentially, representing the largest Q4 over Q3 since fiscal year 2021. FedEx is preparing to spin off Freight into a stand-alone company next year. Full-year revenue was nearly flat at $87.9 billion, while operating income inched down $100 million to $6.1 billion. Capital spending for fiscal 2025 was $4.1 billion, down $1.1 billion or 22% from $5.2 billion the prior year. Capital spending as a percentage of revenue declined to 4.6%, the lowest level in FedEx history. FedEx plans to invest $4.5 billion this year, with a focus on network optimization, fleet and facility modernization, and automation. Chief Financial Officer John Dietrich said the company will reduce capital expenditures on aircraft to $1 billion this fiscal year and maintain that level for several years. First-quarter guidance was mixed. FedEx estimated revenue would range from flat to up 2% in the first quarter. The call for earnings per share of $3.40 to $4 was slightly below analysts estimate. The loss of U.S. Postal Service business represents a $120 million headwind this quarter, but after that won't be a factor in comparing quarterly results. Management said it can't provide full-year guidance because of the uncertain trade environment. Wall Street seemed disappointed that FedEx is on track for low operating profit in a quarter that usually produces the highest growth of the year. The company's stock price was down 5% in the first hour of trading Wednesday. With the Drive initiative substantially complete, most of the $1 billion in projected savings during the 2026 fiscal year will come from the consolidation of the Express and Ground networks, dubbed Network 2.0. The retirement last quarter of 12 cargo jets is also intended to help on the cost front. FedEx leveraged digital tools and its trade compliance expertise to help customers, whipsawed by fast-changing tariff policies, change import strategies. Some shippers postponed orders, while others sped them up to beat future tariff increases or shifted procurement to different countries, according to analysts. Tariffs heavily impacted trans-Pacific volumes, resulting in flat international export volume. The China-U.S. trade lane represents about 2.5% of consolidated revenue and is the most profitable intercontinental lane. FedEx flexed the transportation network in line with new trade flows, said CEO Raj Subramaniam during the earnings presentation. The Tricolor redesign of the air network, which segregates overnight express and deferred daytime freight shipments, is already driving greater flexibility, efficiency and customer satisfaction. The new system was designed to improve asset utilization and cargo density, provide differentiated capability and attract premium international cargo traditionally booked on commercial airlines by logistics companies. FedEx, for example, reduced capacity out of Asia to the U.S. by more than 35% in the first week of May, when e-commerce volumes fell sharply in response to the U.S. cancellation of duty-free treatment for low-value shipments, according to the CEO. Beyond operating fewer flights with its own aircraft, FedEx reduced capacity purchases for low-priority shipments booked on commercial passenger aircraft by FedEx's freight forwarding arm — the so-called White network. Demand picked up when the U.S. temporarily lowered tariffs on China and FedEx ended May with a net capacity reduction of about 20% compared to April. Management said it is redirecting capacity to other regions where demand is strong as it contracts flight activity in Asia. 'The global demand environment remains volatile. We are staying close to our customers to help them plan and adapt as they navigate trade policy changes, and we are actively matching our capacity with demand as the environment evolves,' Subamaniam said. 'What we have accomplished in May would not have been possible without the implementation of tricolor.' Other changes to the air network have enabled FedEx to consolidate shipments from multiple origins in a centralized gateway. In April, FedEx introduced its first direct flight from Singapore to the U.S. to more efficiently capture demand from regional shippers of heavier, palletized cargo. FedEx generated higher revenue per pound in its global airfreight operation as a result of the Tricolor strategy, Chief Commercial Officer Brie Carere said. International air cargo revenue increased 5% in the quarter with a high profit margin. The focus on non-parcel air cargo, along with Europe and healthcare, is part of FedEx's strategy to grow high-margin business and diversify revenue sources. FedEx recently unveiled an AI tool to help users of its online shipment management system select the appropriate product classification code for tariffs, reducing errors, delays and extra work for clearing goods through Customs. The tool uses generative AI to help companies enter accurate details about their shipment. In May, FedEx opened a new automated sorting facility in Brest, France, to provide more package delivery capacity for northern Brittany. It also announced plans to open two high-tech logistics hubs in the United Kingdom, consolidating five terminals into two to improve service and support future growth. The new hubs, anticipated to be operational by 2029, will each be able to sort 32,000 packs per hour, and process different types of deliveries for customers, including international freight and ecommerce shipments, Click here for more FreightWaves/American Shipper stories by Eric Kulisch. FedEx retires a dozen freighter aircraft in efficiency move FedEx says economic uncertainty slowing parcel and freight demand FedEx taps leaders from within for LTL spinoff, to Wall Street's dismay FedEx converts parcel freighter to heavy cargo operation The post FedEx navigates tariff swings to modest profit gain appeared first on FreightWaves. 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
22-06-2025
- Business
- Yahoo
Fred Smith, FedEx founder and parcel industry pioneer, dies at 80
Frederick W. Smith, who founded FedEx Express Corp. fifty-four years ago and revolutionized the parcel delivery business by using aircraft for overnight delivery, died Saturday, the company said on its website. He was 80. 'Fred was more than just the pioneer of an industry and the founder of our great company. He was the heart and soul of FedEx – its People-Service-Profit culture, values, integrity, and spirit. He was a mentor to many and a source of inspiration to all. He was also a proud father, grandfather, husband, Marine, and friend. Please keep the entire Smith family in your thoughts and prayers during this difficult time,' said CEO Raj Subramaniam in a message to FedEx employees. FedEx has grown into an $87.7 billion enterprise with the largest air cargo fleet in the world. It not only transformed the express parcel industry, but became instrumental to the U.S. economy and international trade by transporting documents and packages. Today, it moves more than $2 trillion worth of goods annually, relying on more than 700 aircraft serving 650 airports around the world, 220,000 vehicles and about 5,000 operating facilities. It also operates an extensive U.S. ground network, the largest less-than-truckload carrier in the United States and a major supply chain division. 'Fred Smith is still a legend. In his lifetime he built a company that is as big as UPS, which had a 70-year head start,' said Satish Jindel, a parcel industry expert and president of ShipMatrix who years ago helped FedEx acquire RPS and turn it into FedEx Ground. Fred Smith was born in Marks, Mississippi, in 1944. As a Yale undergraduate, Fred Smith wrote a term paper outlining a system to accommodate urgent, time-sensitive shipments such as medicine, computer parts, and electronics. He received an average grade. After four years of service in the Marines, including two tours of duty in Vietnam where he received the Silver Star, Bronze Star and two Purple Hearts, he purchased in 1970 the controlling interest in a Little Rock, Arkansas-based aircraft maintenance company, Ark Aviation Sales, run by his stepfather and turned its focus to trading used jets. The next year, he established the FedEx Express Corp. with his $4 million inheritance and $91 million in venture capital. Two years later he relocated to Memphis, Tennessee, because of its central location and lack of severe weather conditions, which helped maintain schedule reliability for the airline. On the first night of continuous operation, 389 Federal Express workers and 14 Dassault Falcon jets delivered 186 packages overnight to 25 U.S. cities – giving birth to the modern express industry. Smith developed FedEx as a freight version of a bank clearing house where one bank clearing house was located in the middle of affiliate banks and all representatives were sent to the central location to exchange materials, according to one of his biographies. Smith had to go to great lengths to keep the company afloat in the early days. In one instance, after a crucial business loan was denied, he took the company's last $5,000 to Las Vegas and won $27,000 gambling on blackjack to cover the company's $24,000 fuel bill. It kept FedEx alive for one more week, according to a biography. In 1977, FedEx purchased seven Boeing 727 aircraft, each with a cargo capacity of 40,000 pounds – almost seven times that of the Dassault Falcon. The company was publicly listed on the New York Stock Exchange in 1978 and in 1981 it moved into its global air sortation hub at Memphis International Airport. Ten years after its launch, FedEx achieved $1 billion in revenue. In 1984, FedEx acquired Gelco Express International, a worldwide courier with service to 84 countries. It also launched operations in the Asia Pacific and regular scheduled flights to Europe. The following year it opened its European headquarters in Brussels, Belgium. In 1989, FedEx purchased cargo airline Flying Tigers. FedEx acquired TNT Express, a major European parcel carrier, in 2016. In 2000, Smith made an appearance as himself in the Tom Hanks movie 'Cast Away,' which was filmed on location at FedEx's home in Memphis. Smith was a fierce advocate for free trade in Washington, where friends included President George W. Bush and Sen. John McCain. Bush offered Smith the job of defense secretary for his second term, but Smith declined to spend time with his terminally ill daughter. Smith met with President Donald Trump at the White House earlier this year. Smith is a member of the Aviation Hall of Fame and the Business Hall of Fame. In 2014, Fortune Magazine named him among the world's 50 greatest leaders. Click here for more FreightWaves/American Shipper stories by Eric Kulisch. Amazon taps FedEx for big-and-bulky residential deliveries Lawmaker blames FedEx pressure, Trump bungling for de minimis U-turn The post Fred Smith, FedEx founder and parcel industry pioneer, dies at 80 appeared first on FreightWaves.
Yahoo
06-06-2025
- Business
- Yahoo
Air Cargo Market Size to Approach USD 210.93 Billion by 2031, Growing at 5.8% CAGR, Experiences Growth in Adoption of E-Commerce Platforms
The global Air Cargo Market is witnessing significant growth, driven by rising e-commerce, global trade expansion, and the need for rapid delivery of goods, including perishables and pharmaceuticals. Technological advancements in cargo tracking and fleet modernization are enhancing efficiency. Top key players in the air cargo market include DHL Aviation, FedEx Express, UPS Airlines, Cathay Pacific Cargo, Emirates Sky Cargo, and Cargolux Airlines. US & Canada, June 06, 2025 (GLOBE NEWSWIRE) -- According to a new comprehensive report from The Insight Partners, the global air cargo market is observing healthy growth owing to rising adoption of e-commerce and online shopping demand across different regions. The report runs an in-depth analysis of market trends, key players, and future opportunities. During the course of the research study, various leading industry experts, global sales managers, key opinion leaders, and industry veterans shared their valuable and critical insights about global and regional trends related to the air cargo market. To explore the valuable insights in the Air Cargo Market report, you can easily download a sample PDF of the report - Overview of Report Findings Market Growth: The air cargo market is expected to reach US$ 143.01 billion in 2024 and is expected to reach US$ 210.93 billion by 2031; it is estimated to record a CAGR of 5.8% from 2025 to 2031. The rapid adoption of e-commerce platforms; constant need to transport temperature-sensitive products; sustainable aviation and green logistics solutions; infrastructure development and airport expansion; express and time-definite delivery services; perishable goods and fresh food transportation; and pharmaceutical & healthcare product transportation are some of the major factors pushing the growth of air cargo market across different regions. The Rapid Adoption of E-Commerce Platforms: Online retailing attracts prospective customers than brick and mortar-based competitors due to the global scale of the internet. In addition, e-commerce market players opt from a variety of logistics options such as the surface transport and air transport, to deliver packages to their customers. Therefore, as the global e-commerce market is heating up, varying buying patterns and trends have been observed in different countries of the regions. Majority of the purchase is influenced by the demographics of the country such as the percentage of youth population indulging in e-commerce activity, the economy of the country, age group interested in e-commerce, and the level of awareness in the country. Thus, e-commerce is a future growth driver for the air cargo industry, as online shopping boosts the demand for parcel delivery services worldwide. Air cargo is well-positioned to serve their needs and deliver their goods globally with speed, efficiency, and reliability. The fast-growing cross-border e-commerce market remains a key driver in addition to rising domestic volumes sent by large and small e-retailers. Constant Need to Transport Temperature-Sensitive Products: The transportation of temperature-sensitive products including drugs, chemicals, and medicines is creating a huge opportunity for the air cargo market. For instance, almost 68% of all biotech products are considered to be temperature sensitive. In addition, Marken announced clinical home healthcare services that include clinical drug storage, direct-to-patient delivery, biologic sample collection, central pharmacy, and home care/nursing services. Thus, the pharmaceutical companies are highly dependent on-air transportation due to factors such as time-sensitivity and temperature-controlled transportation. The rapid growth of the pharmaceutical industry resulted in augmenting the demand for transportation services for temperature-sensitive cargo. The demand is anticipated to increase with new pharmaceutical and biotechnology products entering the market every day. Therefore, airlines using advanced cool chain solutions will be well-placed to take full advantage of this sector as it grows. Therefore, airlines can expect increasing demand for shipping services that cater to their specific needs with the pharmaceutical industry is anticipated to increase further in the next several years. Geographical Insights: In 2024, Asia Pacific led the market with a substantial revenue share, followed by North America and Europe, respectively. Asia Pacific is expected to register the highest CAGR during the forecast period. For Detailed Air Cargo Market Insights, Visit: Market Segmentation Based on end user, the air cargo market is segmented into retail, pharmaceutical/healthcare, food/beverage, consumer electronics, automotive, and others. The pharmaceutical/healthcare segment held the largest market share in 2024. By type, the market is segmented into air mail and air freight. The air freight segment held a larger share of the market in 2024. Based on services, the air cargo market is segmented into express and regular. The regular segment held the largest market share in 2024. Stay Updated on The Latest Air Cargo Market Trends: Competitive Strategy and Development Key Players: A few of the major companies operating in the air cargo market are ANA Cargo; Cargolux Airlines International S.A.; FEDEX Corporation; DHL; Cathay Pacific Airways Limited; Emirates SkyCargo; Etihad Cargo; FedEx Corp; United Parcel Service Inc; Zela Aviation The Air Charter Company; Lufthansa Group; and Deutsche Post AG among others. Trending Topics: Global air cargo market, air freight market size, air cargo market forecast 2025, air cargo industry analysis, air freight logistics market, air cargo market valuation, e-commerce air cargo, digital transformation air freight, supply chain optimization, last-mile delivery air cargo, cross-border e-commerce logistics, customer-centric air cargo, air cargo digitalization etc. Global Headlines on Air Cargo Market Etihad Airways and SF Airlines signed cargo business joint business agreement Menzies won a contract from Air India to provide full suite of ground handling and cargo services at eight locations across four continents for the period of 3 years. UPS became the prime air cargo provider for the United States Postal Service Purchase Premium Copy of Global Air Cargo Market Size and Growth Report (2021-2031) at: Conclusion The global air cargo market is segmented into five major regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). Asia Pacific accounts for the largest market share in 2024. The dominance of APAC market is attributed to the growth of e-commerce in countries such as China and India. Another important factor is the presence of technologically advanced industries in countries, including the China and Japan. The increased adoption of Industry 4.0 together with rising advancements in manufacturing and machinery tools is propelling the air cargo market growth. Furthermore, the willingness to invest in advanced components by the manufacturing industries in these countries is adding to the growth of the market. Such factors are expected to propel the growth of Air Cargo Market in the region. Huge demand for air cargo in Asia Pacific is attributed to the robust economic growth of the region and increased focus on retail enactment. Foreign players prefer Asian countries for the expansion of their manufacturing activities due to the availability of a cheaper workforce. Factors such as continuous urbanization, strong economic growth, and a large middle-class population create high domestic demand for fast-moving consumer goods, personal automobiles, household items, and luxury items. Additionally, companies in the e-commerce market opt for various logistic alternatives, including surface transport and air transport, to deliver items to their clients. Thus, with the flourishment of the e-commerce business, different purchase habits and trends have been noted in various countries in Asia Pacific. The proliferating e-commerce industry is likely to boost the air cargo market in Asia Pacific in the coming years with the rise in demand for parcel delivery services around the region. Talk to Us Directly: Trending Related Reports: About Us: The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We specialize in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Biotechnology, Healthcare IT, Manufacturing and Construction, Medical Device, Technology, Media and Telecommunications, Chemicals and Materials. Contact Us: If you have any queries about this report or if you would like further information, please contact us: Contact Person: Ankit Mathur E-mail: Phone: +1-646-491-9876 Home - in to access your portfolio
Yahoo
03-06-2025
- Business
- Yahoo
‘We're FedUp': FedEx Express pilots picket for better contracts
MEMPHIS, Tenn. — FedEx Express pilots stood outside the FedEx Corporation Executive Offices on Tuesday to show their frustration with the company's refusal to provide a contract that would provide pilots with better pay and more respect. The pilots, represented by the Air Line Pilots Association, Int'l, conducted the informational picket outside the executive offices on Shady Grove Road, highlighting their beliefs that the global, Memphis-based company overworks and undervalues its employees. On the official FedEx Pilots webpage, the group quoted an excerpt from a FedEx Pilot job offer letter. In the letter, the company states, 'We appreciate the rigor involved in, and applaud you meeting our challenging hiring standards. Successful candidates contribute a wealth of knowledge and experience to our mission and help FedEx Express maintain its long-held position as the express transportation leader.' FedEx Pilots noted that new hires are praised for meeting the company's 'challenging hiring standards,' but then are challenged to accept less pay, worse schedules, and no respect. A line of pilots was seen standing outside, lining the road with signs reading, 'We're FedUp,' and 'Stop profits over people.' 'FedEx promised a dream job, respect, and 'unsurpassed compensation.' Instead, pilots are overworked, undervalued, and fighting for a fair contract after more than 4 years of negotiations,' said FedEx Pilots. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
