USPS Partnership Drives Record FedEx Holiday Volume

FedEx expects December 12 to be the busiest day in the company’s history, with over 17 million shipments. The company projects a ten percent increase from a year ago, driven by its SmartPost product, which uses the US Postal Service to deliver the shipments to customers’ homes:

MEMPHIS, Tenn., Oct. 24, 2011 – FedEx Corp. (NYSE: FDX) expects to move more than 17 million shipments – almost double its daily average volume – through its global networks on December 12, the projected busiest day in company history. The 10 percent year-over-year increase will be driven by FedEx SmartPost, a residential shipping service designed for online and catalog retailers, as well as expected increased volume at FedEx Ground and FedEx Home Delivery.

Between Thanksgiving and Christmas, FedEx forecasts more than 260 million shipments to move through its worldwide shipping networks. This is a 12 percent increase for the holiday season over last year when 232 million shipments were processed.

“As e-commerce continues to grow and demand increases with more customers shopping and conducting their business online, FedEx SmartPost is poised to handle the increase in shipments,” said Frederick W. Smith, chairman, president and CEO of FedEx Corp. “More than 290,000 FedEx team members also stand ready to deliver the holidays and enable commerce around the globe.”

Retail inventory such as apparel, personal consumer electronics and luxury goods as well as books and other items from large, internet retailers will account for a large portion of FedEx holiday volumes.

FedEx will increase its workforce by approximately 20,000 with seasonal positions to help handle the surge in holiday shipments at FedEx Ground, FedEx Home Delivery and FedEx SmartPost.

The impact of the expected higher volumes was included in the company’s earnings guidance issued in September.

The Holiday Retail Outlook

Holiday sales are expected to grow 2.8 percent during November and December to $465.6 billion, according to the National Retail Federation (NRF). This is higher than the average increase of 2.6 percent over the last ten years.

The NRF also reports that nearly half of shoppers (46.7%) will buy online as compared to 43.9% in 2010. According to eMarketer, holiday online shopping will increase by 12 percent during the 2011 season.

Poised for E-commerce . . . FedEx SmartPost

The FedEx SmartPost network is designed for online retailers and cataloguers who ship high volumes of low-weight shipments to residential customers. FedEx SmartPost has an integrated national network that picks up, sorts and delivers packages directly to U.S. Postal Service facilities for final delivery to residences.

The service continues to experience significant growth. As reported in first quarter earnings ended August 31, FedEx SmartPost average daily volume increased 29 percent due to growth in e-commerce and gains in market share.

  • Marcus

    This is business the Postal Service gave away. Remember Emory?

  • Gregg

    Its all Issa’s fault!!

  • paul

    The Fed-Ex and UPS mail business exist because of the short sightedness of USPS executives along with Congress who gave away parcel post business many years ago. The last mile delivery of mail and packages is being supsidized by the American People through postage discounts and contracts that the Postal Service is giving to the private ran businesses. US Postal Service deliver to all households while the private sector mailers Fed-Ex and UPS can cherry pick where they deliver. Fed-Ex and UPS also drop off many packages to be delivered by the Postal Service and then make a profit because the US Postal Service offers delivery to every home at a cheaper rate. It is smart business for Fed-Ex and UPS but it is killing the US Postal Service. If all the facts came out maybe an intelligent conversation by all parties involved could take place but special interest would have to stop. The high density areas will be serviced because cost would be lower it is the rural areas that will suffer. The security and the sanctity of the mail will be lost if cooler heads do not get together and work out a solution.

  • bob wade

    if fed ex got enough brains to see its not a profit for them to take its to homes/why cant the post office have any brains at all/fed ex is making a big profit off the post office and we are loosing billions

  • Warren

    Paul:

    Keep quiet, PLEASE!!!

    Saying the truth in an open forum will only get you grief and sorrow. Fed Ex and UPS are using the Post Office to maximize it’s profits while we survive for a gasp of air.

    Whoever came with this idea that this symbiotic relationship helps the PO is an IDIOT. Fed Ex and UPS is taking advantage of the PO and the relationship is not 50%/50% more like 75%/25%.