FedEx Forecasts Record Holiday Volume
October 22 2014 - 9:00AM
Business Wire
FedEx Corp. (NYSE: FDX) is forecasting another record holiday.
The company expects to move more than 290 million shipments between
Black Friday and Christmas Eve, an 8.8 percent increase in overall
year-over-year Peak seasonal volume.
The season is expected to be bolstered by three volume spikes
throughout December, occurring the first three Mondays of the month
and each expected to surpass 20 million in volume.
Dec. 15 is projected to be the busiest day in company history,
with a forecasted 22.6 million shipments moving around the world.
Peak projections are included in FedEx earnings guidance for
FY15.
“Our more than 300,000 dedicated team members around the world,
combined with our continued investment in our powerful and flexible
global networks, position FedEx to once again deliver outstanding
customer service this holiday season,” said Frederick W. Smith, CEO
of FedEx Corp.
Year-round preparation for the Holiday
Season
FedEx has taken several measures to prepare for the busy Peak
season.
- The company has continued its strategic
investment in network growth and capacity.
- In the past five years, the FedEx
Ground investment for capacity projects has been close to $2.5
billion – nearly 90 percent of the FedEx Ground total capital
expenditure in that five years.
- In the same time period, FedEx Ground
has completed nearly 250 major capacity projects – including new
facilities, relocations and major expansions.
- In FY15, the company plans to invest
another $1.2 billion in FedEx Ground, most of which is for capacity
and automation, including more than 70 major expansion
projects.
- Network enhancements have accelerated
FedEx Ground delivery by one day or more in more than two-thirds of
the United States. FedEx Ground is 27.3 percent faster than the
competition. Eighty-three percent of packages are delivered in
three business days or less.
- For more than five years, the FedEx
Ground segment has planned and executed a seven-day Peak season
operation, including Black Friday, and plans to do so again in
2014.
- In 2013, the seven-day operation
enabled FedEx Ground to smooth out volume spikes, work volume ahead
of schedule and quickly catch up where there was a weather
disruption, leading to record service.
- FedEx Express continues to modernize
its global fleet of aircraft for enhanced reliability.
- The new freighters, including 757, 767
and 777 aircraft, are operationally more efficient, use less fuel
and have lower emissions.
- FedEx Express also has introduced a new
technology reporting system to its network called “RADAR”, which
enhances delivery operations planning each day for improved service
and efficiency.
- FedEx maintains close collaboration
year-round with customers around the world to understand their
specific needs and forecast for anticipated volumes during the
holiday season.
- The company is adding more than 50,000
seasonal positions across its operating companies. This
includes package handlers, helpers, drivers and other support
positions. Based on growth expectations and network expansion, the
majority of those seasonal workers will have the opportunity to
continue working with FedEx after the holiday season.
- FedEx is using enhanced visibility
technology to help customers plan for package deliveries and
pickups.
- At many FedEx Ground facilities,
high-speed, six-sided camera tunnels with real-time package
tracking updates scan every side of a package, enhancing the
readability of a shipping label, enabling sortation from the bar
code, and providing visibility to a package’s location at all
times.
- That tracking technology, coupled with
network-wide improvements, will offer customers increased
visibility this season, including clarification as to exactly when
a package is available for pickup at FedEx locations (for customers
using the Hold at Location service) and increased visibility into a
package’s journey, from the time FedEx takes possession of the
package to its estimated delivery date.
Solutions for Every
Customer
From speed and price point, to time, flexibility and delivery
location, FedEx offers a suite of solutions designed to fit
customers’ needs.
- FedEx One Rate® - a U.S.-based flat
rate shipping option that combines simplified, predictable pricing
with the same reliable delivery and excellent service customers
expect from FedEx
- Convenient Delivery and Pick-Up options
including:
- FedEx Delivery Manager® – a convenient
option that allows U.S. package recipients to customize home
deliveries to fit their schedule
- Redirect to Hold at FedEx Location –
more than 2400 FedEx locations in the United States, including 1800
plus FedEx Office locations, can securely store packages for up to
seven days
- FedEx Pack Plus – a custom packing
service expanding in 2014, available in FedEx Office locations
across the country
FedEx Volume Over the
Years
FedEx has experienced steady growth in holiday volumes over the
years. A breakdown of the busiest days since 2007 follows:
- Dec. 17, 2007 – 11.5 million
shipments
- Dec. 15, 2008 – 12 million
shipments
- Dec. 14, 2009 – 14.2 million
shipments
- Dec. 13, 2010 – 15.6 million
shipments
- Dec. 12, 2011 –17.2 million
shipments
- Dec. 17, 2012 –19.9 million
shipments
- Dec. 16, 2013 – 22 million
shipments
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 $46 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 300,000
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.
FedEx Media RelationsBonny Harrison,
901-434-8100bonny.harrison@fedex.com
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