May. 12 at 11:31 PM
FedEx CEO Raj Subramaniam downplayed Amazon’s new supply chain services, saying they are “completely different” from FedEx’s global end-to-end logistics network. He emphasized FedEx can move shipments worldwide in a couple of days using its established infrastructure, unlike what Amazon announced.
Amazon recently launched Amazon Supply Chain Services, expanding logistics capabilities beyond its marketplace sellers, sparking concerns it could challenge traditional carriers. The news briefly pressured shipping stocks, with FedEx and UPS falling sharply before partially recovering.
Subramaniam said Amazon’s move is closer to third-party logistics, a segment FedEx already operates in but that represents a small part of its ~
$93B annual revenue. He also stressed Amazon remains an important and “very valuable” customer, describing the relationship as mutually beneficial.
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