Abu Dhabi Freight Forwarding Services
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FedEx highlights cargo drive as it reports Q3 finacials

FedEx has revealed that it is targeting the freight volumes of existing parcel customers as it looks to expand in high-vale verticals. When announcing the company's third-quarter results, chief executive Raj Subramaniam highlighted efforts to win more air cargo volumes. "Our expanding capabilities across key verticals are enabling us to address more of our customers' logistics needs and unlock airfreight demand from traditionally parcel-centric customers," he said. "For example, we drove a 15-fold increase in aircraft engine moves and won new airfreight business with an AI data centre customer after a more than 40-year largely parcel-centric relationship. "Differentiation is increasingly centred on deep customer relationships and tailored service experiences, positioning us to capture more freight volume as we address customers' needs beyond parcel." As well as AI/data centres, healthcare, aerospace, defence and automotive are other focus areas. International airfreight daily freight pounds were up 15% year on year, the company said. He said the focus on winning cargo volumes from existing customers had helped drive third-quarter revenue growth at the company. Figures for the period show that FedEx revenues improved by 12% year on year to $22.9bn. Operating income also improved, increasing by 16% year on year to 1.2bn. Net income for the third quarter was down to $290m from $650m last year, but this metric was affected by costs in association with the spin-off of FedEx Freight as part of efforts to focus on its core express business. The company has also recently sold off its supply chain business to the CMA CGM Group. FedEx said its operating results improved in the third quarter, driven by increased package base yields, higher package volumes, and continued structural cost reductions from business optimisation initiatives. These factors were partially offset by increased purchased transportation rates, higher wage rates and variable compensation expenses, and the financial impact of global trade policy changes. "We have the right strategy in place to continue to be the world's premier B2B parcel and air freight provider, leverage our digital insights to unlock new markets, and use disciplined capital allocation to create additional stockholder value," said Subramaniam. Express US Domestic segment operating income increased during the quarter, driven by higher package yields, increased package volume, improved service mix, and continued cost savings from transformation initiatives. These factors were partially offset by increased purchased transportation rates and higher salaries and benefits expenses. Express International segment operating results increased during the quarter, primarily due to increased base yields, higher international export volume, and increased freight weight. These factors were partially offset by higher wage rates, increased purchased transportation rates, and the financial impact of global trade policy changes.

Poor new year liner schedule reliability only improves as summer arrives

Global schedule reliability has become more seasonal, while weekly liner service deployments have grown increasingly volatile since the pandemic, according to new analysis by Sea-Intelligence. Drawing on its Global Liner Performance database, which tracks monthly vessel arrivals from July 2011 to September 2026, the consultant found a stronger relationship between declining punctuality and the severity of delays, at , alongside more pronounced seasonal fluctuations in reliability. While declining reliability has historically been associated with longer delays, the correlation between the two measures has shifted to a lower sustained level since the pandemic, indicating a tighter relationship between whether vessels arrive late and the magnitude of their delays than was evident before. Sea-Intelligence also identified a marked change in the seasonal pattern of global schedule reliability. Before the pandemic, between 2013 and 2019, reliability typically fell in the early months of the year, improved through spring and early summer, dipped slightly in late summer, before reaching another peak in October and November. However, the alignment of individual years with this established seasonal pattern has deteriorated since 2020. Comparing average monthly reliability across the two periods, Sea-Intelligence found that seasonal fluctuations have become more pronounced, with lower reliability at the start of the year and higher performance peaks during the summer. The consultant said the overall pattern had become more extreme compared with pre-pandemic conditions. Separate Sea-Intelligence analysis found that the number of weekly services operated on the main Asia-Europe and transpacific trades had become considerably more volatile. Using its Trade Capacity Outlook database, Sea-Intelligence measured weekly service numbers on four major routes: Asia-North America West Coast; Asia-North America East Coast; Asia-North Europe; and Asia-Mediterranean. The analysis accounted for fluctuations caused by new service launches and cancellations, blank sailings, schedule slippage, and seasonal or niche services. To measure changes in operational consistency, the consultant calculated the annual standard deviation in weekly service numbers as a percentage of the average number of services operated. The results showed a clear upward shift from 2020 across all four trades, indicating greater uncertainty about how many services would actually operate from one week to the next. The increase was particularly pronounced on the Asia-Europe routes, where variability rose more sharply than on the transpacific. Comparing average variability in 2013-2019 with 2020-2026, Sea-Intelligence found that Asia-North America East Coast experienced the smallest increase, at 26%, while Asia-North Europe recorded the largest, at 78%. The findings have implications beyond the planning challenges faced by cargo owners and logistics providers, as greater week-to-week fluctuations in service numbers also make it harder for container terminals to plan resources and manage workloads, as the number of vessels and volume of cargo requiring handling can change significantly. Sea-Intelligence warned that this increased the risk of sudden congestion, which could, in turn, undermine schedule reliability further.

Analysis: UPS - the cash line matters just as much as the earnings beat

With its planned cut in Amazon volume finished, UPS is growing the volume it wants, lifting revenue per parcel faster than cost and raising its outlook for the second quarter running, and the shares rose almost 6%. Forecasts for 2026 are converging on guidance, but the sell-side analysts are split sharply on 2027, over how much of the improvement survives once fuel surcharges, one-off cash benefits and a steep fourth-quarter margin ramp are set aside - with labor and ...