When FedEx let go of a reported $900 million annual business package with Amazon last year, eyebrows were raised.
  Now finally admitting what most everybody else already knew, that Amazon is indeed a competitor, Fred Smith is at work rebuilding the overnight service that he invented.
  FedEx CEO Fred Smith, as you read this, appears hot on the trail of focusing his business model into serving retailers that have not built out their own delivery network, and are also like FedEx, competing with Amazon for business.
  Companies like Walmart, Kohl’s, Home Depot, Target, Apple, Best Buy and others are now shipping increasing amounts via FedEx.
  Walmart, as example, according to Rakuten Intelligence, is currently delivering 57% of its packages via FedEx whilst Apple shipments numbers for 2019 were put at 53%.
  U.S. Postal Service is still a big partner with FedEx, but with nearly 75 billion USD in losses since 2007, Smith told the Wall Street Journal last year:
  “The Postal Service is imploding.
  “They need to cut service, reduce compensation for its unionized employees, and possibly ask the federal government for subsidies to deliver packages—all unlikely options,” he added.

Build It They Will Come

  FedEx has continued to beef up its capacity by more than 36 million square feet during the past five years, increasing sorting and delivery capabilities for its ground network.
  Those moves, for one thing, have allowed the company to rely less on USPS.
  As 2020 begins, FedEx has more than 680 jets and 180,000 delivery vehicles.

  So where is the focus right now for Fred Smith who dreamed up overnight delivery, while studying at Yale, and then went on to launch Federal Express June 18,1971 in Little Rock, Arkansas?
  Can Mr. Smith, who changed air cargo nearly two generations ago in 1971 become Mr. Smith, who does it again in 2020?
  Fred certainly is not about to let go of the reins of the company he thought up just yet. He speaks of the need to watch what he does, not what is said.
  Mr. Smith told WSJ, “In sports, business and the military, the only thing that counts at the end of the day is, what the score is on the board.
  “We’ll let the points be counted up at the end of the game,” Mr. Smith smiles.
Geoffrey

White Paper Looks at USA Exports

     “Air Cargo export numbers from USA were a genuine roller coaster ride during 2019,” reports Mike White, President of Cargo Network services (CNS).
     “CNS CASS numbers through November 2019 reflect the U.S. government agreements with some of its key trade partners.
     “Over all,” Mike said,” we have seen a 6.8% drop in U.S. exports reported through CNS CASS.
     “Much of this reduction was in cargo going to two regions: North Asia saw a 10% drop; Asia Pacific was down 7%; and Europe was down 5%.
“The rest of the world has seen much the same, except for India which increased by 6%, albeit on very low volumes compared to the rest of the world.

June Was Not Bustin’ Out

     “Overall, U.S. exports saw the largest decrease in June, over 2018 figures with a 10.5 % drop.
     “The last quarter of 2019 was also underscored with decreases of 8.9% in November and 8.5% in September.
     “The last three months of 2019 were worse as we saw drops starting to occur in late 2018.”

What’s Next

     Brightening up a bit, Mike notes:
     “With the new U.S., Mexico and Canada (USMC) agreement, and the proposed agreements forthcoming with China, we could improve volumes in 2020. Of course what is now at play are also the recent issues in the Middle East and how the U.S. negotiations go with Europe and the UK after Brexit.
     “Other factors that are still at play are the upcoming U.S. Presidential elections, the strength of the U.S. economy and what impact the issues in the Middle East may have upon fuel prices.

Agenda Is More To Do

     “As trade agreements become normalized, we still have a lot of work to do with education and outreach to those people in the cargo community that make our business go.
     “CNS is working with our partners at IATA training and education on how we can improve training skills for the current and future air cargo work force.
     “We also should be seeing much more on the development of ONE Record, which is a vision for an end-to-end digital logistics and transport supply chain, in which data is easily and transparently exchanged in a digital ecosystem of air cargo stakeholders, communities and data platforms.
     “Our very special focus is being part of the global outreach on the need to be better informed on the transport of lithium batteries.

Turning The Juice Up On Lithium

     “CNS has already begun outreach awareness campaign on the dangers of shipping undeclared and misdeclared lithium batteries.
     “Consumer demand for lithium batteries is growing by 17% annually.
     “With it, the number of incidents relating to undeclared or misdeclared lithium batteries has also risen and it is important that everyone is aware of the proper handling involved,” Mike White said.

The Partnership

     Lastly, Mike enthuses, “the CNS Team is working hard on this year’s 30th Anniversary edition of its Annual 2020 Partnership Conference set for Dallas-Fort Worth, Texas April 26-28, 2020.
     “We are very proud to be bringing this event to deep in the heart of Texas and it is guaranteed to be one of the best,” Mike White assures.
     “We encourage folks to take advantage of the early bird rate for significant savings!
     “We look forward to seeing you in Fort Worth and let’s hope that trade is used in a positive way and that 2020 will be a better year for the air cargo industry,” Mike White concluded.

(L to R) first CNS President Jack Lindsay, second CNS President Anthony (Tony Calabrese), while original CNS Board Members Brian Barrow and Buz Whalen flank American Airlines CEO Robert Crandall.

Still The Best

     As CNS approaches the celebration of its 30th Partnership Conference we should never forget the work of people like Mike White in 2020, first CNS President Jack Lindsay and second CNS President Tony Calabrese, who along with industry executives like original CNS Board Member Brian Barrow, Guenter Rohrmann, Jo Frigger, Pat Phelan, Buz Whalen and others, recognized the need for better cooperation between airlines and forwarders and supported and brought the CNS Partnership Conference to the world.
     Today no industry trade show anywhere in the world approaches the overall networking value-for-money impact, that CNS delivers every year at its Annual Partnership conference.
More click here.
Geoffrey

Tune in to
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Will 2020 Feature The Mouse That Roared?
Brandon Lets It All Hang Out
Rx For January-Laughter!

Vol. 19 No. 1
Will 2020 Be Year Mouse Roared
Chuckles for January 8, 2020
Paths Of Glory—Brandon Fried
Rx for January—Laughter!

Vol. 19 No. 3
It Takes A Village To Ship Air Cargo
Chuckles for January 10, 2020

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