FedEx is in the midst of a major U.S. operations transformation under its “Network 2.0” initiative, and part of that is taking on significantly more Amazon shipments. The new deal is focused on shipping larger Amazon packages.
The onboarding isn’t fully active yet; FedEx expects to complete it by its fiscal third quarter, which runs from December through February. Once the Amazon deal is fully ramped up, FedEx anticipates that the added volume will support continued U.S. domestic revenue growth. These packages will be heavier-weight parcels, handled as part of FedEx’s “Ground” portfolio. The Network 2.0 plan merges Express and Ground networks to reduce overlap, improve efficiency, and strengthen competitive positioning.
FedEx revenue from U.S. small- and medium-sized businesses (SMBs) grew by more than 10% year over year in Q1. FedEx attributes this to targeted sales, alignment between sales and operations, and faster onboarding of new customers. The increase comes as UPS is reportedly shrinking its Amazon volumes to focus on more profitable shipments.
C.H. Robinson has launched a new service to consolidate freight in Mexico before crossing into the U.S. to improve utilization and reduce inefficiencies, according to a September 11 press release. The goal is to reduce the number of underfilled trucks, since trucks crossing the border often carry only a single pallet.
They use a proprietary tool called Optimizer that selects mode, route, carrier, and timing to move freight efficiently. Shippers using this service will get improved visibility into their freight up to 48 hours before crossing the border.
C.H. Robinson will leverage bonded warehouses to defer U.S. tariffs when freight enters into bond, or even eliminate them if the freight is just passing through to Canada. This helps brands with cash flow and tariff exposure. By consolidating freight and reducing wasted space and redundant trucks, shippers may save up to 40% in costs.