Cargo a sector transforming?
FedEx founder Fred Smith said that the global freight business would see some drastic changesin the future.
Not only would air carriers face competition fromships
, customers would look for customised door-to-door delivery options.
FedEx has seen a decline in fiscal fourth-quarter profits -- international priority airfreight-shippingvolumes fell 3 per cent in its fiscal fourth quarter that ended on May 31, while its US domesticexpress volume fell 5 per cent, compared to a 4 per cent decline in the previous quarter -- and haschalked out a plan for cost-cutting.
Speaking at a post-earnings conference, Smith said that
the traditional airport-to-airport business "is not growing”.
This while “thedoor-to-door express segment is growing,
and the movement of goods on thewater is growing".