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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n<\/iframe><\/div>\n<div id=\"article-body\">\n<p>FedEx freight volumes from China to the US \u201cdeteriorated sharply\u201d in May after President Donald Trump launched his trade war, hitting demand for consumer shipments on the company\u2019s most profitable route.<\/p>\n<p>Shares in <a href=\"https:\/\/www.ft.com\/stream\/390cc7c4-50e6-4d8b-846d-090ede32b01d\" data-trackable=\"link\">FedEx,<\/a> the express parcel delivery company long seen an economic bellwether, fell nearly 6 per cent on Wednesday after the company said that it expected trade between the countries to remain \u201cpressured\u201d in the current June-to-August quarter.<\/p>\n<p>\u201cWe just simply cannot predict how that is going to play out,\u201d Brie Carere, chief customer officer said, as she told investors on a results call, adding that the China-US route represented 2.5 per cent of the company\u2019s revenue and that the trade lane was its most profitable intercontinental route.<\/p>\n<p>Carere added that the \u201cvast majority\u201d of the effect on trade was the result of changes to the de minimis customs rules, which exempted imports of individual items worth $800 or less from tariffs and were heavily used by China\u2019s ecommerce giants Temu and Shein. The exemption was abolished by the <a href=\"https:\/\/www.ft.com\/donald-trump\" data-trackable=\"link\">Trump<\/a> administration.<\/p>\n<p>The remarks from FedEx, which said it would only share its outlook only for the current quarter due to the \u201cuncertain global demand environment\u201d, are the latest indication of the severe effects on global trade of Trump\u2019s <a href=\"https:\/\/www.ft.com\/trump-tariffs\" data-trackable=\"link\">erratic policies<\/a>.<\/p>\n<p>The Trump administration in April announced tariffs as high as 145 per cent on goods from China. While the two sides subsequently agreed substantial tariff reductions, there remains considerable uncertainty about the outlook for levies between the two countries.<\/p>\n<p>Chief executive Rajesh Subramaniam told call participants that it was \u201cvery, very difficult to predict\u201d what would happen over the next 30 to 60 days or further.<\/p>\n<p>\u201cWe will see how that evolves and if it\u2019s very dynamic, and at that point we\u2019ll be able to be more prescriptive,\u201d he said.<\/p>\n<p>The company reported net income for its fourth quarter from March to May up 13 per cent on the previous year, to $1.65bn, on revenue of $22.2bn, broadly flat compared with the previous year\u2019s $22.1bn.<\/p>\n<p>The company also predicted revenue growth in the June-to-August quarter between zero and 2 per cent compared with the same quarter in 2024 and earnings per share of between $3.40 and $4.00, excluding restructuring costs, below the market\u2019s expectations.<\/p>\n<p>As well as its flagship express parcel product, FedEx offers a range of other logistics and freight forwarding services. The figures came just four days after the <a href=\"https:\/\/www.ft.com\/content\/f4747942-59c9-49d9-967a-db4ddc59a777\" data-trackable=\"link\">death<\/a> of Fred Smith, FedEx\u2019s founder and executive chair.<\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/110916f8-031e-4e5f-a787-676127fba820\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this…\n","protected":false},"author":6,"featured_media":32550,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-32549","post","type-post","status-publish","format-standard","has-post-thumbnail","category-us","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/32549","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=32549"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/32549\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/32550"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=32549"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=32549"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=32549"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/iframe><\/div>\n<div id=\"article-body\">\n<p>FedEx freight volumes from China to the US \u201cdeteriorated sharply\u201d in May after President Donald Trump launched his trade war, hitting demand for consumer shipments on the company\u2019s most profitable route.<\/p>\n<p>Shares in <a href=\"https:\/\/www.ft.com\/stream\/390cc7c4-50e6-4d8b-846d-090ede32b01d\" data-trackable=\"link\">FedEx,<\/a> the express parcel delivery company long seen an economic bellwether, fell nearly 6 per cent on Wednesday after the company said that it expected trade between the countries to remain \u201cpressured\u201d in the current June-to-August quarter.<\/p>\n<p>\u201cWe just simply cannot predict how that is going to play out,\u201d Brie Carere, chief customer officer said, as she told investors on a results call, adding that the China-US route represented 2.5 per cent of the company\u2019s revenue and that the trade lane was its most profitable intercontinental route.<\/p>\n<p>Carere added that the \u201cvast majority\u201d of the effect on trade was the result of changes to the de minimis customs rules, which exempted imports of individual items worth $800 or less from tariffs and were heavily used by China\u2019s ecommerce giants Temu and Shein. The exemption was abolished by the <a href=\"https:\/\/www.ft.com\/donald-trump\" data-trackable=\"link\">Trump<\/a> administration.<\/p>\n<p>The remarks from FedEx, which said it would only share its outlook only for the current quarter due to the \u201cuncertain global demand environment\u201d, are the latest indication of the severe effects on global trade of Trump\u2019s <a href=\"https:\/\/www.ft.com\/trump-tariffs\" data-trackable=\"link\">erratic policies<\/a>.<\/p>\n<p>The Trump administration in April announced tariffs as high as 145 per cent on goods from China. While the two sides subsequently agreed substantial tariff reductions, there remains considerable uncertainty about the outlook for levies between the two countries.<\/p>\n<p>Chief executive Rajesh Subramaniam told call participants that it was \u201cvery, very difficult to predict\u201d what would happen over the next 30 to 60 days or further.<\/p>\n<p>\u201cWe will see how that evolves and if it\u2019s very dynamic, and at that point we\u2019ll be able to be more prescriptive,\u201d he said.<\/p>\n<p>The company reported net income for its fourth quarter from March to May up 13 per cent on the previous year, to $1.65bn, on revenue of $22.2bn, broadly flat compared with the previous year\u2019s $22.1bn.<\/p>\n<p>The company also predicted revenue growth in the June-to-August quarter between zero and 2 per cent compared with the same quarter in 2024 and earnings per share of between $3.40 and $4.00, excluding restructuring costs, below the market\u2019s expectations.<\/p>\n<p>As well as its flagship express parcel product, FedEx offers a range of other logistics and freight forwarding services. The figures came just four days after the <a href=\"https:\/\/www.ft.com\/content\/f4747942-59c9-49d9-967a-db4ddc59a777\" data-trackable=\"link\">death<\/a> of Fred Smith, FedEx\u2019s founder and executive chair.<\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/110916f8-031e-4e5f-a787-676127fba820\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this…\n","protected":false},"author":6,"featured_media":32550,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-32549","post","type-post","status-publish","format-standard","has-post-thumbnail","category-us","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/32549","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=32549"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/32549\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/32550"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=32549"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=32549"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=32549"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}