FedEx CEO Raj Subramaniam expressed confidence in his company's ability to thrive even amidst potential disruptions to global supply chains. President-elect Donald Trump's threats to significantly increase import tariffs, particularly on China, could potentially cause major upheavals in these chains. FedEx reported a mixed quarter on Thursday and announced plans to separate its freight business into a standalone publicly traded company, FedEx Freight.
Subramaniam emphasized FedEx's extensive global network, stating that it allows the company to adapt and relocate resources effectively during periods of change. He noted that China accounts for approximately 28% to 30% of global manufacturing, but FedEx's network covers 99% of global commerce, providing flexibility to navigate shifting patterns. Subramaniam also cited encouraging demand trends for the current month, anticipating a possible record December for the Los Angeles port. The planned spin-off of FedEx Freight is expected to create long-term value for shareholders of both companies. Subramaniam highlighted FedEx's access to valuable global supply chain insights, positioning the company not only as a leading transportation provider but also as a significant player in global supply chain technology
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FedEx CEO: Supply Chain Shakeups No Threat to Company GrowthFedEx CEO Raj Subramaniam remains optimistic about the company's future, even amidst potential disruptions to global supply chains caused by President-elect Donald Trump's proposed tariff increases.
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