Parcel

FedEx posts weak fiscal Q4 operating results, but EPS beats expectations

FedEx Corp. (NYSE:FDX) reported late Tuesday a $334 million net loss in its fiscal 2020 fourth quarter, as what is typically a solid period for the company collided this year with the worst part of the worldwide fallout from the coronavirus pandemic.

FedEx posted a $1.28-per-share loss in the quarter based on Generally Accepted Accounting Practices (GAAP). Adjusted non-GAAP results, however, came in at $2.53 per share, 11 cents a share above non-GAAP results of analysts polled by Barchart....

https://s29755.pcdn.co/news/fedex-posts-weak-fiscal-q4-operating-results-but-eps-beats-expectations

Amazon building first robotics fulfillment center in Australia

Modern Amazon warehouse in Australia.

Amazon announced on Tuesday, June 30, that it has begun construction on its first fulfillment center in Australia equipped with robots to improve the efficiency of processing online orders. 

The 2-million square-foot facility, which will house up to 11 million items and create more than 1,500 jobs, is Amazon’s second fulfillment center in western Sydney. Construction is expected to be completed in late 2021.

Amazon Australia launched in December 2017 and now has three fulfillment centers,...

https://s29755.pcdn.co/news/amazon-building-first-robotics-fulfillment-center-in-australia

Amazon doling out $500 million ‘thank you’ to workers

Delivery driver delivering package

In a brief statement on the company’s blog, Day One, Amazon (NASDAQ: AMZN) announced COVID-19-related bonus payments totaling $500 million.

The payments to “front-line employees and partners” are as follows:

  • Full-time Amazon and Whole Foods Market employees and delivery service partner drivers will receive $500 while their part-time counterparts will get $250.
  • All “leaders” in front-line positions at Amazon and Whole Foods Market will receive $1,000.
  • Delivery service partner owners will receive...

https://s29755.pcdn.co/news/amazon-doling-out-500-million-thank-you-to-workers

Amazon’s real estate arm reportedly involved in several deals this week

Amazon fulfillment

Amazon (NASDAQ: AMZN) appears to have had a busy week on the real estate front as it has been tied to several large transactions.

Amazon spending spree?

On June 23, Business Insider reported that the company had signed a deal in New York City to lease its biggest facility ever. The one million square foot, multi-story facility will replace a currently vacant paper factory in Queens. The report also said Amazon was negotiating a lease on a 620,000-square foot facility that is under construction in...

https://s29755.pcdn.co/news/amazons-real-estate-arm-reportedly-involved-in-several-deals-this-week

DHL starts construction of Munich airport facility

DHL Express has reached agreement with Germany’s Munich airport authority to start construction of a new cargo facility.

The facility, which is expected to cost 70 million euros ($78.8 million), will include parking for 65 delivery vehicles and a cargo-handling building of more than 86,000 square feet.

DHL currently leases space for its cargo operation at Munich airport. Once construction of the new facility is completed in 2022, DHL will have an airport building that is six times the size of its...

https://www.freightwaves.com/news/dhl-starts-construction-of-munich-airport-facility

USPS, facing fiscal calamity, confronts new challenges to international parcel competitiveness

The U.S. Postal Service (USPS) is fighting to keep its head above water amid staggering financial losses related to the coronavirus pandemic and the Trump administration’s refusal to grant the relief the agency says it needs to avoid going broke by Sept. 30. At the same time, USPS faces competitive headwinds on the international parcel shipping front starting July 1.

On that date, a new pricing structure for the movement of low-value small parcels goes into effect that raises rates on shipments...

https://www.freightwaves.com/news/usps-facing-fiscal-calamity-confronts-new-challenges-to-international-parcel-competitiveness

FM Logistic’s operating income up 20%; future guidance withheld

French trucks on break

French-based third-party logistics provider FM Logistic on Wednesday reported 21% year-over-year growth in earnings before interest and taxes (EBIT) for its fiscal year ended March 31.

Operating income of 42.5 million euros (U.S. $47.8 million) was the result of only modest revenue growth of 8.7% at 1.43 billion euros (U.S. $1.61 billion). Excluding foreign exchange rates, revenue increased 8% during the year. Management said the increase came from “entirely organic” growth.

“FM Logistic again...

https://www.freightwaves.com/news/fm-logistics-operating-income-up-20-future-guidance-withheld

Deutsche Bank sees some winners as earnings season approaches

Werner truck on highway

In a report to clients, Deutsche Bank (NYSE: DB) analyst Amit Mehrotra views the outlook for transportation equities as “favorable” heading into the second quarter earnings season.

He said transportation demand bottomed in late April with a slow but steady recovery since. Citing recent conversations with management teams at a dozen transportation companies and a sequentially improving demand backdrop, Mehrotra initiated favorable “catalyst calls” on Werner Enterprises (NASDAQ: WERN), XPO...

https://s29755.pcdn.co/news/deutsche-bank-sees-some-winners-as-earnings-season-approaches

Parcel carriers will lift COVID-19 delivery surcharges — maybe

In the past two weeks, UPS Inc. (NYSE:UPS) then FedEx Corp. (NYSE:FDX) imposed what both referred to as “temporary” surcharges on a portion of their U.S. residential deliveries to offset higher costs related to the coronavirus outbreak. When, and how, they lift the surcharges is another matter.

One expert who sees the surcharges becoming a permanent fixture is Glenn Gooding, president of consultancy iDrive Logistics and a 21-year veteran of the revenue management wars at UPS. Gooding said last...

https://s29755.pcdn.co/news/parcel-carriers-will-lift-covid-19-delivery-surcharges-maybe

NTSB schedules public meeting on fatal Atlas Air flight

White planes on airport taxiways.

The National Transportation Safety Board will hold a hearing next month as part of its investigation into the probable cause of an Atlas Air cargo plane that crashed in February 2019 in a marshy bay near Houston. 

The Boeing 767-300 freighter was operated by Atlas under contract with online mega-retailer Amazon (NASDAQ: AMZN), and was also carrying mail for the U.S. Postal Service. It was flying to George Bush Intercontinental Airport from Miami when it went down, killing the two pilots and one...

https://www.freightwaves.com/news/ntsb-schedules-public-meeting-on-fatal-atlas-air-flight

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