FedEx inks six-year deal with Qantas Freight

FedEx subsidiary TNT Australia signed a US$266 million deal to add more air freight capacity to meet the growing domestic demand.


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FedEx shipment Courtesy of FedEx

FedEx, through its subsidiary TNT Australia, has signed a new six-year deal with air freight carrier Qantas Freight to add more capacity to meet growing domestic demand in the midst of rapid e-commerce and online shopping.

Valued at around US$266 million (A$350 million), the deal will give FedEx access to the belly space of Qantas and Jetstar domestic services, as well as the freighter network across Australia.

Also read: FedEx adds flights in Asia Pacific, tells online buyers to shop early

Qantas Freight executive manager Catriona Larritt said the new deal comes at a time when the demand for freight services is higher than ever but the lack of belly space is slowing down the movement of shipments.

This agreement will enable FedEx and TNT to continue meeting Australia’s intensifying demand for freight, particularly while passenger aircraft belly space capacity remain constrained due to COVID-19,” Larritt said.

FedEx is looking to maintain critical domestic B2B volume in several industries like mining, construction, and pharmaceuticals, with freight shipments ranging from machinery parts to urgent medical supplies and manufacturing materials.

The express integrator is also actively working with small and medium businesses in Australasia who face growing demand in the wake of accelerated e-commerce and online shopping, according Peter Langley, vice president, FedEx Express Australasia.

Our long-term domestic agreement with Qantas Freight will provide these businesses with reliable access to the best connectivity within Australia and to new international markets,” Langley added.



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