FedEx reports drop in SmartPost volume

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.

  • Sr

    Some of these pkgs. are being shipped thru Amazon/USPS on Sunday. Not all, but some have also come directly into the Priority stream, as some companies and small shippers have become cost sensitive.