FedEx told analysts on a third quarter call that Amazon was simply addressing capacity issues with its own assets a la other major retailers, so they weren’t worried about the business. For the quarter, FedEx’s net income fell 19% to $507 million, while Ground revenue was up 30% to $4.41 billion. However higher costs due in part to network expansion and peak season demand caused the segment’s operating income to drop from $559 million to $557 million.
In the global shipping and logistics business, the unforeseen is the norm, and as some brands are learning the hard way. That’s especially true in China, where total online retail spending is forecast to climb above $1 trillion by 2019. Despite these issues, China holds more than enough business opportunities to offset them.
Retail imports based on cargo volume at the nation’s major retail container ports is expected to decline year-over-year for the next few months but the first half of the year should still amount to a 4.5% increase compared with the same period last year, according to the National Retail Federation.
At the same time, import volumes are returning to West Coast ports after the labor issues that plagued the first half of 2015. Busy East Coast ports like New York and New Jersey saw large spikes in the double digits last year, as shippers sought alternate means to ensure product delivery, even if it meant significantly longer transit times.
Consumers in Latin America want to buy goods from U.S. brands. But Latin Americans who want to buy online usually will not. That’s because international shipping prices can price most consumers out of buying from U.S. merchants. In this video taken at NRF Big Show 2016, iguama.com CEO Diego Fernandez talks about how he can help U.S. merchants save on shipping and win Latin American customers.