Like UPS before it, FedEx reported a blowout first quarter fueled by pandemic-era ecommerce demand, with revenue and profits exceeding estimates and average daily volume in its ground parcel network increasing by 31%. Executives said they are ready for a massive peak holiday season with personnel, facilities and technology.
FedEx has announced a number of rate changes, some of which will take place in January while others will take effect Nov. 2, ahead of the holiday rush.
FedEx’ Q4 top and bottom line fell short of expectations, the latter impacted by pension accounting adjustments and a settlement with California drivers.
The USPS has put on hold planned pricing increases in parcel services until all pricing requests across products were approved by the PRC.
While many carrier tactics can be detrimental and costly for shippers, there are certain things shippers can do to offset the bottom-line effect.
As it continues to battle UPS, FedEx and DHL for a larger slice of the ecommerce shipping pie, the USPS has asked the PRC to keep its competitive Priority Mail rates unchanged for domestic delivery while raising Parcel Select – the primary last-mile option of the major carriers – by 8%.
As it is losing money from fuel surcharge revenue due to falling oil prices, FedEx plans to increase its fuel surcharge rates on Feb. 2, effectively putting them in line with rates from rival UPS.
Regional carrier OnTrac, announced a new service, DirectPost, which will enable it to provide next-day and two-day ecommerce shipping at postal rates.
FedEx released its second quarter financials on Dec. 18, which showed a net income of $500 million, up 14% from last year’s $438 million.