FedEx yesterday announced a jump in fourth quarter profits, but it also noted that its SmartPost product, a partnership with the USPS, had lost volume:
FedEx SmartPost average daily volume decreased 8% while net revenue per package was up 8% due to rate increases and improved customer mix, partially offset by higher postage costs.
While it wasn’t enough to significantly damage FedEx Ground’s profitability, the news is a reversal from past reports crediting growth in SmartPost with boosting the company’s overall success. Just a year ago, SmartPost daily volumes had jumped 25% thanks to increased ecommerce shipments. That may be a worrying trend for the USPS as it tries to capture “last mile” package delivery volumes to help offset letter mail losses.
Read more: FedEx – News Release.