FedEx revenues rise, while Express trends worsen in 2QFY19

This week, Memphis-based FedEx reported a 9.3% year-over-year increase in revenue for its 2QFY19, ended 30 November, to US$17.82 billion. Operating income during the quarter was up only 4.8%, compared to a double-digit increase reported for 1Q, to $1.17 billion, and net income rose 20.6% to $935 million. The Express segment presented substantial headwinds for […]

• Caryn Livingston
• December 20, 2018

Amazon’s potential threat to FedEx and UPS

More freighters are likely to follow the fortieth 767-300F delivered last month to Amazon Air’s fleet. Today, a research note from Morgan Stanley added that “the market is missing the risk” that Amazon Air poses to growth at United States-based integrators FedEx and UPS. Of course, the idea that Amazon may intend to become an integrator […]

• Caryn Livingston
• December 4, 2018

DP-DHL 3Q operating profit under pressure from PeP division

Ongoing challenges in Deutsche Post-DHL Group’s (DP-DHL) Post-eCommerce-Parcel (PeP) segment depressed an otherwise positive third quarter for the Group. While DP-DHL posted operating profit (EBIT) gains in Express, Global Forwarding and Freight, and Supply Chain segments, a substantial year-over-year decrease in third quarter EBIT for the PeP division weighed heavily on the Group’s overall EBIT […]

• Chelsea Toczauer
• November 6, 2018

SF Express’ parent company to acquire DHL’s supply chain ops in China

Deutsche Post DHL Group (DP-DHL) will transfer its regional supply chain operations in Macau, Mainland China, and Hong Kong to SF Holding, the parent company of Shenzhen-based SF Express, the two companies announced today. Once the deal – which includes an upfront payment from SF Holding of €700 million, plus revenue-based royalties for the next decade – […]

• Charles Kauffman
• October 26, 2018

Asian freighter fleet analysis part II: Fleets chart long-distance courses

Last week, in Part I of our two-part analysis of the freighter fleet in service with carriers based in China, Hong Kong and Taiwan, we began with an overview of the freighter fleets operated by carriers based in Taiwan and Hong Kong. Today, we continue with an analysis of the freighter fleet based in mainland […]

• Charles Kauffman
• October 9, 2018

Blue Dart expands network as industry preps for Indian e-commerce boom

Reflecting rising optimism in India as a burgeoning e-commerce market, and subsequent investment into the country’s logistics, air cargo, and e-commerce markets, Deutsche Post-DHL Group’s Blue Dart is pursuing a major expansion plan to expand its logistics network to connect every home in India. Blue Dart is the leading third-party logistics provider in India and […]

• Caryn Livingston
• September 24, 2018

How will FedEx beat back Amazon’s challenge? Here’s a hint

FedEx yesterday offered a glimpse at how the express company will fend off competition from Amazon, which continues to develop its own Amazon Air dedicated air network. The secret: infrastructure. David Cunningham, president and CEO of FedEx’s express business, said during a presentation before the Wings Club in New York yesterday that FedEx’s infrastructure gives […]

• JJ Hornblass
• September 14, 2018

UPS expects big return on facilities, fleet investments

At a UPS “Transformation Conference” in New York today, the company outlined plans for expanding and automating its international and domestic express services to better accommodate burgeoning cross-border e-commerce volumes, justifying the major capital expenditures with larger expected returns on revenue. The express company struggled somewhat during the second quarter of this year, reporting a […]

• Caryn Livingston
• September 13, 2018