FedEx

After stating in July that it was preparing to cut down on its Sunday delivery services in remote and rural areas of the United States, from 95% to 80% of the U.S. population, Memphis-based global freight transportation and logistics services provider FedEx is now reducing its Sunday delivery footprint to around 50% of the country, according to various reports.

Earlier this week, FedEx Freight, the less-than-truckload (LTL) subsidiary of Memphis-based global freight transportation and logistics services provider FedEx, said it has expanded its FedEx Freight Direct e-commerce offering for big and bulky items.

Quarterly revenue—at $22.8 billion—was off 3% annually, and net income—at $788 million—fell 25%. Operating income—at $1.176 billion—was off 26%. Diluted earnings per share—at $3.07—dropped 21%, topping Wall Street estimates of $2.83.

The firm said that average tally of parcels delivered per day came in at around 85 million, with OTP ranges for the three largest carriers—FedEx, UPS, and the United States Postal Service (USPS)—in similar territory, at 96.3%, 97.0%, and 96.2%, respectively.

In an annual tradition, LM takes a look at the top news in logistics and supply chain posted in the last year on Logistics Management. The editorial team presents the top 10 logistics stories of 2022.

Various reports issued this week indicated that FedEx Freight, the less-than-truckload (LTL) subsidiary of Memphis-based global freight transportation and logistics services provider FedEx, will begin furloughing employees early next month, in order to be in line with lower-than-expected levels of demand.

FedEx Freight, the less-than-truckload subsidiary of global logistics and freight transportation services provider FedEx, announced it is rolling out a new pilot initiative, which it described as an industry changing space and pace pricing pilot for select customers.

Late last week, a Reuters report stated that the FedEx Ground subsidiary of Memphis-based global freight transportation and logistics services provider FedEx is expecting lower volumes, reflecting how its customers anticipate shipping fewer holiday packages.

Quarterly revenue—at $22 billion—increased 6% annually, and operating income—at $1.23 billion—fell 17.4% annually, with adjusted net income—at $905 million—falling 23.9%. Diluted earnings per share—at $3.44—was down 21.3% and short of Wall Street estimates of $5.48.

Shares of the delivery giant sank 21% Friday, wiping out $11 billion in market value, and dragging the broader market to its worst week since June, as the results fueled concern of weaker e-commerce and business-to-business activity.

Three of our top parcel industry sources offer their respective takes on one of the most ubiquitous parts of freight transportation and logistics - parcel and last-mile delivery, and with providers and carriers continuing to have the upper hand over shippers, they suggest to leave no stone unturned when it comes to carrier selection and leveraging partnerships.

FedEx Express has expanded its FedEx International Connect Plus (FICP) offering to four Asia Pacific, Middle East, and Africa (AMEA)-based region, including: Indonesia, New Zealand, the Philippines, and Vietnam.

Less than Truckload (LTL) is equal to the e-commerce task.

Company officials said that this facility, its West Phoenix Service Center, is “perfectly positioned” to serve the growing Phoenix market, while bringing FedEx Freight’s total door count to almost 26,000.

FedEx plans to deploy more AI-robotic automation to streamline operations, while also signing warrant agreement with Berkshire Grey to purchase common stock