FedEx CEO: Supply Chain Shakeups No Threat to Company Growth

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Fedex,Supply Chain,Tariffs

FedEx 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.

FedEx CEO Raj Subramaniam expressed confidence in his company's ability to thrive even amidst potential supply chain disruptions. President-elect Donald Trump's threats to significantly increase import tariffs on several countries, particularly China, could lead to global supply chain disruptions. FedEx reported a mixed quarter on Thursday and announced plans to spin off its freight business into a separate publicly traded company, FedEx Freight.

Subramaniam highlighted FedEx's extensive global network, stating, 'As the supply chain patterns change, we are here, there and everywhere.' This broad reach, he argued, provides an advantage in navigating dynamic market conditions. While acknowledging that China accounts for roughly 28% to 30% of global manufacturing, Subramaniam emphasized that FedEx's network serves 99% of global commerce. This allows the company to 'adapt and move our capacity around' efficiently. He also pointed to better-than-expected demand this month, suggesting consumers are feeling optimistic and attributing the potential for a record December at the Los Angeles port. The planned spin-off, he said, could unlock long-term value for shareholders of both companies. Subramaniam envisions FedEx leveraging its global supply chain insights to become a leading transportation and technology provider.

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