FedEx announces financial forecasts that exceed expectations, thanks to strategic cost reductions. The company, which had experienced difficulties in executing its strategic plans, now appears to be implementing effective measures to reduce costs across its network. This comes against the backdrop of a change in the type of freight handled by FedEx over the last five to ten years, with a marked growth in e-commerce and an increased volume of B2C (business-to-consumer) deliveries.

FedEx is focusing on creating an optimised network for the future by integrating its air and ground networks, which were previously largely independent. This consolidation aims to significantly reduce operational costs. In addition, the company is assessing the role of FedEx Freight in this consolidation, although there does not appear to be any intention to spin off this business, as it represents a less cyclical business with considerable pricing power.

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