FedEx founder Fred Smith said that the global freight business would see some drastic changes in the future. Not only would air carriers face competition from ships, customers would look for customised door-to-door delivery options.
FedEx has seen a decline in fiscal fourth-quarter profits — international priority airfreight-shipping volumes fell 3 per cent in its fiscal fourth quarter that ended on May 31, while its US domestic express volume fell 5 per cent, compared to a 4 per cent decline in the previous quarter — and has chalked out a plan for cost-cutting. Speaking at a post-earnings conference, Smith said that the traditional airport-to-airport business “is not growing”. This while “the door-to-door express segment is growing, and the movement of goods on the water is growing”.