FedEx Express

Memphis-based global freight transportation and logistics services provider FedEx recently announced new peak surcharges and fees for its U.S. Express and Ground services and Ground International.

FY 2022 full-year revenue rose 17.6% annually, and operating income climbed 46.8% annually. For the fiscal fourth quarter, revenue rose 23% annually, and operating income headed up 278%. Earnings per share (topping Wall Street expectations of $5.02 per share) well outpaced the $1.28 per share recorded a year ago, as well as a $334 million loss.

The company said that in order to provide its customers with the best possible service during this challenging time, these surcharge increases are being implemented

Quarterly revenue—at $21.5 billion—rose 18.6% annually, and operating income—at $1.06 billion far outpaced the $483 million reported for the same period last year. Adjusted earnings per share—at $3.47—climbed 146% annually, and beat Wall Street expectations, of $3.21 per share.

Company officials said that these coming rate increases will “enable FedEx to continue investing in service enhancement, fleet maintenance, technology innovations and other areas to serve customers more effectively and efficiently.”

Revenue—at $17.4 billion—was off 2.3% compared to $17.8 billion a year ago, and operating income—at $475 million—was well off from $1.32 billion a year ago. The company’s quarterly net income on an adjusted basis—at $663 million—trailed the $1.32 billion recorded a year ago. Adjusted earnings per share—at $2.53—trailed the $5.01 from a year ago while topping Wall Street expectations of $1.52.

Earnings per share, at $1.41, fell short of Wall Street expectations of $1.43, and revenue, at $17.5 billion, was up 1% annually. Net income, at $315 million, dropped 57% for the same period, and quarterly operating income, at $411 million, was down 55%.

Earnings per share, at $2.51, fell short of Wall Street expectations of $2.78, and revenue, at $17.3 billion, was down roughly 3% annually. Net income, at $560 million, dropped 40% for the same period, and quarterly operating income, at $684 million, was down compare to the $1.08 billion recorded a year ago.

Roughly two months after Memphis-based transportation and logistics bellwether FedEx announced it made a strategic decision not to renew the FedEx Express U.S. domestic contract with Amazon.com, Inc., reports issued today indicate it is also severing its ties with the global e-commerce bellwether on the ground side, too.

FedEx made that clear late last week, when it announced it made a strategic decision not to renew the FedEx Express U.S. domestic contract with Amazon.com, Inc. as it focuses on serving the broader e-commerce market.

FedEx Extra Hours, enables shippers to fulfill e-commerce orders later in the day and into the evening and also receive late pickups by FedEx Express, with next-day local delivery and two-day shipping to any address in the continental United States, according to FedEx.

FedEx officials said that it has had a 30-year relationship with Flying Cargo Group, adding that this agreement was reached at the time that the service agreement between the companies was set to expire. And they added that this agreement is expected to be made official during the first half of 2019 and subject to regulatory approval.

Earlier this week, FedEx Express, the air cargo subsidiary of FedEx, announced it has rolled out a new dedicated flight that four times a week that will move between Sydney, Australia and Singapore. Company officials said that this new offering is past of FedEx’s continued investment to boost its operational network and help Asia Pacific-based shippers expand globally.

While air cargo volumes continue to stage a modest uptick, shippers are now waiting to see how the introduction of larger freight aircraft might serve to sustain this growth. At the same time, shippers need to keep an eye on which domestic airports are prepared to handle more capacity and the new demands driven by e-commerce.

FedEx subsidiary FedEx Express announced this week that it has rolled out a new flight into and out of Hanoi, Vietnam, which will connect the country’s capital to the FedEx APAC (Asian Pacific) hub based in Guangzhou, China.