This logistics giant announced the largest price increase in history! It will also further reduce bu
- Author:sofreight.com
- Release Date:2022-09-29
A few days ago, the global logistics giant Fedex (Fedex) announced its first fiscal quarterly fiscal year (June 1st to August 31st) than expected performance. (Review of the past: Weak demand! The logistics giant's income is far lower than expected, and multiple cost reduction measures are announced)
On September 22, the company announced that in order to cope with the slowdown of the global express delivery business, the company plans to increase the shipping fee in 2023, and the comprehensive rate (GRI) raised 6.9%, which is the largest year -on -year increase in the company's history.
Federal Express said that the shipping freight will be fully transferred from January 2, 2023. Fedex Express, Fedex Group, Federal Express (Fedex Home Delivery) services will increase by 6.9%, and Fedex Freight will increase from 6.9%to 7.9 to 7.99%to 7.99%to 7.99 to 7.99 to 7.9. Between %, depending on the customer's freight table.
Under normal circumstances, the annual freight rate of Federal Express is between 4.9%and 5.9%. Analysts expect GRI in 2023 to increase by 6%or more to offset the impact of cost inflation.
To some extent, GRI, which is suitable for non -contract transportation, is symbolic, because almost all parcel delivery delivery is based on the contract. However, the growth level of contract freight and the discounts obtained from these growth are linked to the operations of the wrap carrier's GRI. Therefore, GRI is a key rainy watch that the shipper can expect the freight and discounts in the contract.
Federal Express said that while GRI increased, the company plans to reduce the cost of US $ 2.2 billion to US $ 2.27 billion by cutting the costs of Fedex Express aviation and international business departments as well as Fedex Group US transportation sector by cutting the costs of Fedex Express. The company said it would reduce the number of Fedex Express and temporarily parked the number of planes to be set. The company said these measures would save 1.5 billion to 1.7 billion US dollars.
Federal Express stated that by closing some sorting operations and suspending on Sunday delivery operations, the Fedex Group department will save 300 million to 500 million US dollars. It did not close almost all expensive Sunday delivery networks as some people suggested.
In addition, Federal Express plans to reduce the cost of $ 4 billion before fiscal year (starting from June 1, 2024). The company stated that it will adhere to the plan announced at the end of June, re -adjust the network and end the isolation operation between the three business departments.
According to Federal Express's performance, Fedex Express's operating income decreased by 69%year -on -year. Federal Express has blamed the significant decline in the department on the sudden weakness of the transportation volume of cross -Pacific Airlines in the last few weeks of this quarter. The company said that cost indicators lag behind the decline in freight volume, and operating costs are still high compared to demand.
This shocking performance was unexpected by everyone and caused federal express stock prices to fall more than $ 40 in the transactions last Friday.
On September 22, the company announced that in order to cope with the slowdown of the global express delivery business, the company plans to increase the shipping fee in 2023, and the comprehensive rate (GRI) raised 6.9%, which is the largest year -on -year increase in the company's history.
Federal Express said that the shipping freight will be fully transferred from January 2, 2023. Fedex Express, Fedex Group, Federal Express (Fedex Home Delivery) services will increase by 6.9%, and Fedex Freight will increase from 6.9%to 7.9 to 7.99%to 7.99%to 7.99 to 7.99 to 7.9. Between %, depending on the customer's freight table.
Under normal circumstances, the annual freight rate of Federal Express is between 4.9%and 5.9%. Analysts expect GRI in 2023 to increase by 6%or more to offset the impact of cost inflation.
To some extent, GRI, which is suitable for non -contract transportation, is symbolic, because almost all parcel delivery delivery is based on the contract. However, the growth level of contract freight and the discounts obtained from these growth are linked to the operations of the wrap carrier's GRI. Therefore, GRI is a key rainy watch that the shipper can expect the freight and discounts in the contract.
Federal Express said that while GRI increased, the company plans to reduce the cost of US $ 2.2 billion to US $ 2.27 billion by cutting the costs of Fedex Express aviation and international business departments as well as Fedex Group US transportation sector by cutting the costs of Fedex Express. The company said it would reduce the number of Fedex Express and temporarily parked the number of planes to be set. The company said these measures would save 1.5 billion to 1.7 billion US dollars.
Federal Express stated that by closing some sorting operations and suspending on Sunday delivery operations, the Fedex Group department will save 300 million to 500 million US dollars. It did not close almost all expensive Sunday delivery networks as some people suggested.
In addition, Federal Express plans to reduce the cost of $ 4 billion before fiscal year (starting from June 1, 2024). The company stated that it will adhere to the plan announced at the end of June, re -adjust the network and end the isolation operation between the three business departments.
According to Federal Express's performance, Fedex Express's operating income decreased by 69%year -on -year. Federal Express has blamed the significant decline in the department on the sudden weakness of the transportation volume of cross -Pacific Airlines in the last few weeks of this quarter. The company said that cost indicators lag behind the decline in freight volume, and operating costs are still high compared to demand.
This shocking performance was unexpected by everyone and caused federal express stock prices to fall more than $ 40 in the transactions last Friday.