The company announced last week that they will not be hiring until further notice, closing roughly 90 offices, cuts its number of flights and suspending some aircraft use citing a major drop-off in global shipping.
‘FedEx cited “global volume softness” that “accelerated” during the period’s final weeks, the company said, as shoppers have switched from buying goods online to spending more on services and entertainment,’ The Trends Journal wrote.
The company says that since the outlook for international shipping will continue to be on the decline through November, the company will also be cutting capital expenditures and is withdrawing its financial guidance for the remainder of the year and all of 2023.
Furthermore, the company posted that their revenue was $500 million lower than what was initially forecast, along with profits being at only half of what analysts speculated, per a financial report for August 31st.
FedEx Ground also saw revenues fall $300 million shy of the company’s forecast.
CEO Raj Subramaniam told CNBC last week that they are “aggressively accelerating” their efforts to cut costs and boost productivity.
This news caused a ripple effect with other shipping companies: ‘UPS’s stock fell 4.5 percent and the share price of XLO Logistics stumbled 4.7 percent. Germany’s Deutsche Post AG’s stock price surrendered 4.6 percent and the U.K.’s Royal Mail PLC was down 8.1 percent.’
‘“It’s going to be hard” for the companies “to make up the volumes for the rest of the year,” Satish Jindal, president of SJ Consulting, told CNBC. Average daily package volume in this year’s peak holiday shipping season will not exceed last year’s, he added,’ The TJ added.
The Trends Journal also provided additional insights:
FedEx’s unwillingness to forecast its financial performance through 2023 offers additional evidence that the world’s economy is headed into a recession.
Inflation’s rate may well moderate, but for the rest of this year and into next, consumers will pinch their pennies twice before spending them.
In addition, folks bought incessantly during the COVID era as well as during the recovery. Especially with remote work as the new normal, fewer people need to be accumulating more stuff.
AUTHOR COMMENTARY
Wisdom is the principal thing; therefore get wisdom: and with all thy getting get understanding.
Proverbs 4:7
While it is true that people are being forced to tighten their belts as they fall deeper and deeper into debt, as no amount of stimulus can help, this major downturn in shipping is according to plan.
According to the Absolute Agenda plans for 2030 and 2050, there “must” be a contraction in shipping:
All airports except Heathrow, Glasgow and Belfast close with transfers by rail [by 2030]. All remaining airports close [thereafter].
There are currently no freight ships operating without emissions, so shipping must contract [by 2030]. All shipping [then] declines to zero [by 2050].
And even though this think tank attributes this decline in shipping via boats, you can see that the same philosophy still applies to domestic and international shipping on the ground and air.
The WinePress also reported last year that FedEx was launching autonomous postal robots, that can walk up the steps of a home, and avoid clutter and people on the streets. Therefore, as the company and others like them cutting their staff robots will take their place.
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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The price of oil is really squeezing businesses, along with inflation.
This is ridiculous. If we are not wanted here then maybe we all should just leave. Its just not worth it anymore.
They’re liars. Everywhere I go I see Fed Ex & UPS trucks, and if not those, then Amazon. What they’re doing is pushing the loss onto the people by contracting out the risk& expenses; and they’ve been doing that since the ’80’s when they offshored our industry, denied the gains that had been made with the scrubbers & regulation….imposed industry on the third world where they could get around any standard & keep the nondiscerning & unaware sleeping as they were slowly squeezed, dumbed down, demoralized & drowned in debt while the corporatists & bankers rolled in the dough, evaded taxes & responsibilities they pushed onto their ‘contractors’, & were bailed out time & again. Like 2008. Now it’s gonna all be our fault again….and the dum-dums believe the lies & follow the pied piper’s subtle dialectic lies again with their blame & shame, rather than acknowledgement of sin & repentance which might bring revival. Disgusting.
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For another perspective go to Rumble & listen to the testimony The Texas Boys channel, (Warning!) From a FINANCIAL ADVISER: The (COLLAPSE!) – CBDC