FedEx expects slow recovery in bellyhold capacity, growth

FedEx in its latest reports noted its financial year results and outlined expectations of ongoing supply chain disruption, expressing a slow return of air bellyhold capacity and lower growth levels for the coming fiscal year.
According to the reports, in the fiscal year ending May 31, the express giant saw revenues increase by 11.3 per cent year on year to $93.5bn and operating income increased by 6.6 per cent to $3.8bn on the back of higher yields across its express, ground and freight businesses. Looking ahead, the coming 12 months are expected to see freight demand reduce with volumes expected to grow by a low single digit. Brie Carere, CCO, FedEx said, “We anticipate consumers will keep spending and their spending will continue tilting towards services from goods. We expect more consumers to return to stores. With this backdrop, we do expect pressure on B2C volumes.” She added that the latest Purchasing Managers Index showed a sharp decline and that inventory restocking is slowing after a build up last year and earlier this year. “This will dampen freight demand,” she said on a positive note.