In this week’s Carrier Update, Shawn Compton highlights the following topics:
Cyber-Monday Breaks Records
Adobe Analytics reports that consumers spent $11.3 billion on Cyber Monday, up from the record $9.1 billion spent on Black Friday. While these two milestone shopping days are now etched as records in the book, it is yet to be determined how the overall season will fare.
In the parcel market, capacity remains open, and delivery speeds look good overall.
FedEx Updates
A few years back, FedEx embarked on a journey to bring their hybrid service, Smart Post, in-house via their Ground network. Per the latest issue of FreightWaves, things have not gone according to plan.
The service, rebranded as Ground Economy, saw capacity restrictions which pushed customers to more costly FedEx Services. This caused significant volume erosion. Fiscal 2020 saw avg daily volumes of more than 2.16 million, but this has fallen to 1.1 million for the 2022 fiscal year.
Although FedEx is trying to right the ship, Dean Maciuba, a former longtime FedEx executive, said, “It’s too late. The damage has been done”.
Only time can tell, however, how this will pan out.
Global Supply Chain Restrictions
Last week we discussed the current impact of the COVID restrictions in Shanghai, and it seems like some big players are taking action. Apple is reportedly accelerating plans to move a significant portion of its iPhone production, per The Wall Street Journal, in the face of unprecedented iPhone shortages this holiday season.
India and Vietnam will most likely benefit from this move, at least in the near term.
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