Subscribe to our free, weekly email newsletter!


Global Trade: Fedex issues positive perspective

The good news mirrors observations made by industry analysts who maintain that “innovation” is the key to strengthening our nation’s logistics sector
By Patrick Burnson, Executive Editor
June 23, 2011

In its fourth quarter earnings report, Fedex explained its 6 percent y-t-d improvement on strong yield improvement in all transportation segments, as well as volume growth of ground and international express shipments.

This is good news indeed, and mirrors observations made by industry analysts who maintain that “innovation” is the key to strengthening our nation’s logistics sector.

FedEx has attributed the increase in its fourth quarter revenue and earnings to continued strong yield improvement in all transportation segments, as well as volume growth of ground and international express shipments.

“FedEx Ground maintained its exceptional performance this quarter, increasing volume, yields and margins, while FedEx Freight returned to profitability, said FedEx executive vice president & CFO Alan Graf Jr. “Even with higher planned capital spending in fiscal 2012, margins, cash flows and returns are expected to improve year over year.”

The fortunes of Fedex may not represent a tide lifting all boats, however. According to Rosalyn Wilson, author of the esteemed “State of Logistics” report, the economy has been in a fragile state for close to four years now.
“The highly touted recovery in some sectors has not generated enough momentum to cascade into other less robust sectors,” she said.

After the most recent round of data releases, especially the disheartening rise in unemployment and drop off in freight volumes, Wilson and other analysts are revising their growth expectations downward.

“I too have watched this situation developing over the last two months and have concluded that we may have hit a wall,” she said. “It has been close to two years since the recession was pronounced over and for many Americans things have not improved.”

A more detailed account of Wilson’s findings will appear in the July edition of LM.

For related articles click here.

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Seasonally-adjusted (SA) for-hire truck tonnage in July headed up 1.3 percent on the heels of a 0.8 percent increase in June. The ATA’s not seasonally-adjusted (NSA) index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment, was 133.3 in July, which outpaced June’s 132.3 by 0.8 percent, and was up 2.8 percent annually.

Volumes for the month of July at the Port of Long Beach (POLB) and the Port of Los Angeles (POLA) were mixed, according to data recently issued by the ports. Unlike May and June, which saw higher than usual seasonal volumes, due to the West Coast port labor situation, July was down as retailers had completed filling inventories for back-to-school shopping.

With a 0.8 cent decrease, this week’s average price per gallon is $3.835 and stands as the lowest price since hitting $3.844 the week of November 25, 2013.

LTL carriers are rapidly investing in expensive, on-dock, three-dimensional size measurement capturing machinery, and they are hoping one day of being able to more accurately charge shippers rates based on the actual dimensions of their shipments, rather than the traditional weight-and-distance-based formula that has been in effect since the 1930s or even earlier.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) recently reported that its Freight Transportation Services Index (TSI) dipped 0.9 percent from May to June.

Article Topics

News · Freight · Global Trade · Logistics · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA