Air Cargo

FedEx Pivots to Cargo Push With Parcel Customer Conversion Strategy

FedEx is targeting airfreight volumes from its existing parcel customer base as part of a broader push into high-value logistics verticals, chief executive Raj Subramaniam said following third-quarter results. The strategy has already yielded significant wins, including a 15-fold increase in aircraft engine shipments and new airfreight business from a data centre operator after more than 40 years as a largely parcel-centric customer. International airfreight daily freight pounds climbed 15% year-over-year. Third-quarter revenues grew 12% to $22 billion, while operating income rose 16%. Net income declined to $290 million from $650 million, reflecting spin-off costs associated with FedEx Freight and the divestiture of its supply chain business to CMA CGM Group. Improved package yields and volumes offset headwinds from elevated transportation and wage costs, plus global trade policy impacts.