DESPITE talk to the contrary, fedex does not see e-commerce giant Shein and Temu as an engine of growth to compensate for lingering weak volume demand worldwide leading to a poor first quarter.
FedEx's international economy service for packages saw a 22 per cent revenue increase to US$1.4 billion in the first quarter on a 35 per cent volume jump-another indicator that FedEx is one of many air freight shipping companies contending with a flurry of low-value packages from overseas.
According to chief customer officer Brie Carere, FedEx assumes there will be 'continued strength' in export volume demand out of Asia for the remainder of the fiscal year.
Ms Carere said the company has 'very productive relationships' with Shein and Temu, without referring to either e-commerce giant by name but calling them the 'big two.'
'We've also been very strategic in making sure that the relationship is mutually beneficial,' she said. 'What do I mean by that? Obviously, these are two massive shippers coming out of the Asia market, and we have found small opportunities to work together relative to our overall Asia business. So, we're really happy with the relationship.'
But Ms Carere suggested that FedEx is not looking to be reliant on the business of either Temu or Shein.
'They are accretive, but we have really focused on the parts of their business where they do need speed and/or where we have available capacity coming into the United States,' she said. 'They will not be a significant growth driver for us and we're not planning on that.'
SeaNews Turkey
FedEx's international economy service for packages saw a 22 per cent revenue increase to US$1.4 billion in the first quarter on a 35 per cent volume jump-another indicator that FedEx is one of many air freight shipping companies contending with a flurry of low-value packages from overseas.
According to chief customer officer Brie Carere, FedEx assumes there will be 'continued strength' in export volume demand out of Asia for the remainder of the fiscal year.
Ms Carere said the company has 'very productive relationships' with Shein and Temu, without referring to either e-commerce giant by name but calling them the 'big two.'
'We've also been very strategic in making sure that the relationship is mutually beneficial,' she said. 'What do I mean by that? Obviously, these are two massive shippers coming out of the Asia market, and we have found small opportunities to work together relative to our overall Asia business. So, we're really happy with the relationship.'
But Ms Carere suggested that FedEx is not looking to be reliant on the business of either Temu or Shein.
'They are accretive, but we have really focused on the parts of their business where they do need speed and/or where we have available capacity coming into the United States,' she said. 'They will not be a significant growth driver for us and we're not planning on that.'
SeaNews Turkey
