E-Commerce Driving ‘Another Busy Peak Season’ at FedEx, Says Senior Executive

FedEx this week is “closing out what has been another busy peak season” for the company, “largely driven by the continued rapid growth of e-commerce,” said FedEx Services co-CEO Mike Glenn on a Tuesday earnings call. “As e-commerce grows, so does the challenge of peak, with multiple days of volume levels approaching or surpassing double our average daily volume,” Glenn said. “This surge in demand is driven primarily by a relatively small number of customers.” Fewer than 50 “large retail and e-tail customers” account for most of the peak demand, “so it’s extremely important that we understand their forecasts well in advance to allow us to plan resources properly,” he said. Though a few FedEx e-commerce customers this year “have experienced demand below their forecasts,” demand at most clients is “meeting expectations,” he said.