Resource Center/Article • 07/16/2021
Carriers Discuss Financial Targets, and LTL Heats Up
FedEx and UPS continue to discuss financial targets and strategic goals amidst earnings reports, and LTL industry continues to grow.
PARCEL CARRIER NEWS
FedEx
FedEx hit all-time records for their fourth quarter results and expected revenue and earnings growth for fiscal 2022.
- Leadership Quote: “The ongoing execution of our strategic initiatives has driven significant improvement in our fourth quarter results and highlights the continued strength of our business,” said Michael C. Lenz, FedEx Corp. executive vice president and chief financial officer. “For fiscal 2021, we delivered record financial results while also recognizing the valuable contributions by our team members. We expect continued strong momentum in fiscal 2022, and our investments are focused on the areas of greatest growth and highest returns, like e-commerce, to position us for sustained long-term growth in earnings, cash flows, and returns.
UPS
UPS shared its new Peak Surcharges, upcoming events, announced 2023 targets, and focused on their vision that was created by Carol B. Tomé.
- UPS Peak Surcharge rates increased on July 4 with additional handling and saw another rise on October 3 with large packages. The last increase was on October 31 carrying on into the holiday season.
- UPS’s upcoming events begin on July 27, 2021 and October 26, 2021 at 8:30 AM EDT – 9:30 AM EDT. The first event goes over Q2 2021 United Parcel Service, Inc. Earnings Conference Call and the second event goes over Q3.
GRI & SURCHARGES
LTL Carrier News
- Knight-Swift obtained AAA Cooper Transportation and couldn’t be more excited about this growth opportunity. “We have long had interest in the LTL space and admired the success of AAA Cooper,” Knight-Swift CEO Dave Jackson said in a statement. “We feel honored to be stewards of the AAA Cooper brand.”
- This summer is an LTL focused summer due to the amount of freight. “There are things happening on both the demand and supply side that are very favorable,” added Amit Mehrotra, managing director of airfreight and surface transportation at Deutsche Bank. “That allows for pricing to go much higher. In an industry like LTL, one point of pricing is worth three points of volume.”
- FedEx says LTL rivals have interrupted service to FedEx Freight customers. FedEx Freight’s daily shipment grew 30% thanks in part to rival LTL carriers canceling service, creating an overflow that caused a disturbance in FedEx Freight’s service levels. The carrier cutoff pickups at thousands of locations this month to restore quality standards.
Written by Allison Carr
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