Raj Subramaniam noted that FedEx has seen more flows from China to Europe, Latin America, and other parts of Asia.
- FedEx and its peer UPS are reeling from the Trump administration’s dynamic tariff policy, which has affected demand in some areas.
- FedEx expects a $1B impact from uncertainty as retail sentiment turns bearish.
- The company is also reportedly shifting its capacity, including redeploying aircraft, in response to the changes.
FedEx CEO Raj Subramaniam reportedly stated that changes to global trade and supply chains, driven by factors such as technology and geopolitical risks, are likely to persist in the long term.
“There’s a new equilibrium state being formed in this new supply chain pattern and they’re much more regional in nature,” Subramaniam said in a panel discussion in Singapore, according to a Bloomberg News report. “The industrial economy is going to take a little longer to change. But once it changes, it’s difficult to go back.”
What Else Did Subramanian Say?
FedEx and its peer UPS are feeling the impact of the Trump administration’s dynamic tariff policy, which has affected demand in some areas. They have also taken a hit as the Trump administration has moved to end the de minimis exemption, a trade policy that allowed low-value imported goods valued below $800 to enter the United States without companies having to pay customs duties or taxes. The company also said that it expects to take a $1 billion hit due to global trade uncertainty.
Subramaniam noted that FedEx has seen more flows from China to Europe, Latin America, and other parts of Asia, amid a slowdown in deliveries between the U.S. and China. The company is also reportedly shifting its capacity, including redeploying aircraft, in response to the changes.
“We can move our capacity far faster than manufacturing can move. So we know from the bottom up, we see these signals and we can react,” he said.
What Are Stocktwits Users Thinking?
Retail sentiment on Stocktwits about FedEx and peer UPS was in the ‘bearish’ territory at the time of writing.
FedEx stock has fallen over 6% this year, while UPS stock has declined over 27%.
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