FedEx SmartPost to Drive Busiest Day in FedEx History
November 11 2010 - 1:00PM
Business Wire
FedEx Corp. (NYSE: FDX) expects to see its busiest day in
company history when it moves almost 16 million shipments around
the world on December 13. This is a more than 11 percent increase
from last year’s busiest day when the company handled 14.2 million
shipments.
FedEx Corp. (NYSE: FDX) expects to see
its busiest day in company history when it moves almost 16 million
shipments around the world on December 13. This is a more than 11
percent increase from last year's busiest day when the company
handled 14.2 million shipments. (Photo: Business Wire)
For the overall holiday season, FedEx is expecting a total
volume increase of approximately 11 percent compared to 2009. FedEx
forecasts more than 223.3 million shipments will move through its
global networks between Thanksgiving and Christmas.
More than half of the holiday season volume increase will be
from FedEx SmartPost shipments. FedEx SmartPost volume is largely
driven by online retailers and cataloguers who ship high volumes of
lighter shipments to residential customers. FedEx SmartPost has a
completely integrated national network that picks up, sorts and
delivers packages directly to U.S. Postal Service facilities for
final delivery to residences. The affordable rate structure allows
retailers to offer discounted shipping to customers during the
holidays and beyond.
During the week of December 13, also the busiest week of the
year for FedEx, the company expects to move more than 63.1 million
shipments compared to last year’s busiest week of 57.5 million
shipments. Items such as books from large internet retailers and
retail inventory such as apparel, personal consumer electronics and
luxury goods will drive FedEx holiday volumes.
“Once again, the FedEx work force of more than 285,000 team
members will make the holidays happen for millions of FedEx
customers across the globe,” said Frederick W. Smith, chairman,
president and CEO of FedEx Corp. “We are optimistic about the
volumes during the holiday shipping season and expect growth to be
driven mainly by FedEx SmartPost with U.S. domestic ground packages
and global air express shipments contributing to volumes as
well.”
On average, more than 8 million packages move through the FedEx
systems daily.
The FedEx Outlook
FedEx is encouraged by the anticipated increase in holiday
volume. The impact of the expected higher volumes was included in
the company’s earnings guidance issued in September.
The Holiday Retail
Outlook
According to the National Retail Federation (NRF), holiday sales
are expected to increase a moderate 2.3 percent this year to $447.1
billion. This growth is slightly lower than the ten-year average
holiday sales increase of 2.5 percent. In 2009, sales increased 0.4
percent. NRF also found that retailers will continue to focus on
supply-chain efficiencies and inventory control.
Online holiday sales are forecast to climb 15 percent compared
to last year according to the research and consulting firm
Deloitte.
FedEx Ground . . . For the Holidays and
Beyond
Year over year, FedEx Ground volumes on its busiest day are
expected to increase by 1.8 million packages. Approximately 50
percent of this increase is due to volume growth at FedEx
SmartPost.
Retailers, cataloguers and other customers are increasingly
discovering the unique value proposition available for high volume,
lightweight residential packages offered by FedEx SmartPost.
“All three of our ground services continue to grow and attract
new customers based on our outstanding overall service and unique
attributes,” said David Rebholz, president and CEO of FedEx Ground.
“One major factor is speed, as FedEx Ground is faster to more
overall locations and FedEx Home Delivery is faster to more
residential locations than UPS Ground.”
FedEx Ground continues its nationwide network expansion to boost
daily package volume capacity and further enhance the reliability,
speed and service capabilities of its network.
The network enhancements have resulted in accelerating ground
service delivery by one day or more in approximately two-thirds of
the United States since 2003. FedEx Ground now delivers more than
61 percent of packages in two days or less and more than 82 percent
of packages in three days or less.
FedEx Busiest Day of the Year . . . A
History of Growth
FedEx has experienced steady growth in holiday volumes over the
last several years. A historical breakdown of busiest day volumes
follows:
- Dec. 12, 2005 – 9.8 million
shipments
- Dec. 18, 2006 – 10.6 million
shipments
- Dec. 17, 2007 – 11.5 million
shipments
- Dec. 15, 2008 – 12.0 million
shipments
- Dec. 14, 2009 – 14.2 million
shipments
- Dec. 13, 2010 – 16.0 million shipments
projected
About FedEx Corp.
FedEx Corp. (NYSE: FDX) provides customers and businesses
worldwide with a broad portfolio of transportation, e-commerce and
business services. With annual revenues of $36 billion, the company
offers integrated business applications through operating companies
competing collectively and managed collaboratively, under the
respected FedEx brand. Consistently ranked among the world's most
admired and trusted employers, FedEx inspires its more than 285,000
team members to remain "absolutely, positively" focused on safety,
the highest ethical and professional standards and the needs of
their customers and communities. For more information, visit
news.fedex.com.
Certain statements in this press release may be considered
“forward-looking” statements within the meaning of the Private
Securities Litigation Reform Act of 1995 with respect to future
events and financial performance. These forward-looking statements
involve risks and uncertainties. Actual results may differ
materially from those contemplated (expressed or implied) by such
forward-looking statements, because of, among other things,
economic conditions in the global markets in which we operate, the
impact of any international conflicts or terrorist activities,
disruptions to the Internet or our technology infrastructure, the
impact of changes in fuel prices and foreign currency exchange
rates and adverse weather conditions or natural disasters, as well
as the other risks and uncertainties you can find in FedEx’s and
its subsidiaries’ press releases and SEC filings, including the
risk factors in FedEx’s most recent annual report on Form 10-K, as
updated by FedEx’s quarterly reports on Form 10-Q.
Photos/Multimedia Gallery Available:
http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6508685&lang=en
FedEx (NYSE:FDX)
Historical Stock Chart
From Apr 2024 to May 2024
FedEx (NYSE:FDX)
Historical Stock Chart
From May 2023 to May 2024