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 ·

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

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 [email protected]

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!

Article Topics

Freight · Global Trade · Logistics · All Topics
Latest Whitepaper
Supplier Relationship Micro Management
Optimizing Across Six Guiding Principles
Download Today!
From the July 2017 Logistics Management Issue
E-commerce continues to fuel a boom that’s tempered by overcapacity, rate pressures, sluggish demand and political doubt. The result: “cognitive dissonance” that finds a $1.4 trillion market scratching its head.
2017 Truckload Brokerage Roundtable: Technology continues to connect the dots
Cloud Transportation Management Systems (TMS): Weis Markets streamlines “both sides” of the DC door
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Women in Logistics: Breaking Gender Roles to Win the War for Talent
In this session you'll hear from a panel of women who are now leading top-level logistics and supply chain operations. The panel will share their success stories as well as advice for women who are now making their way up the ladder.
Register Today!
EDITORS' PICKS
28th Annual State of Logistics: Into the great unknown
E-commerce continues to fuel a boom that’s tempered by overcapacity, rate pressures, sluggish...
2017 Top 50 3PLs: Investment and Consolidation Maintain Traction
The trend set over the past few years for mergers and acquisitions has hardly subsided, and a fresh...

The Evolution of the Digital Supply Chain
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management,...
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...