FedEx sees big rise in Christmas shipments

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FedEx Express is predicting that it will handle more than 260 million shipments in the month before Christmas – a 12 per cent increase on last year.

In the EMEA region, it expects the busiest day for shipments out from the region to be Tuesday 20th December, 2.3 per cent up on last year. Likewise, 19th December will be the peak day for shipments coming into the region, up 3.5 per cent from 2010.

Last year between the last week of November and Christmas day it handled 232m shipments.

“We feel optimistic about the anticipated increase in holiday volume again this year and we are confident in our global network to support such levels of activity” said Michael Holt, Vice President Northern Europe Operations, FedEx Express. “Every year our team members show their commitment to ensure our customers receive the same, exceptional service for their holiday shipping as they do any other day throughout the year.”

The group has just announced a 66 per rise in operating income for the second quarter to reach $780m (£504m) while sales were up ten per cent to $10.6m (£6.9m).

“Our improved performance was largely a result of effective yield management programs and strong demand for FedEx Home Delivery and FedEx SmartPost services,” said chairman Fred Smith.

“With the healthy growth in online shopping this holiday season, demand is increasing for these residential delivery services.”

FedEx has signed an agreement with The Boeing Company to purchase 27 new 767-300F aircraft, with three arriving in fiscal 2014 and six per year in fiscal 2015-2018.

However, it is also delaying the delivery of 11 777F aircraft, two of which will be deferred from fiscal 2013, five from fiscal 2014 and one per year in fiscal 2015-2018, to better balance air network capacity to demand.

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