FedEx CEO Confident in Company's Ability to Weather Supply Chain Disruptions

FedEx CEO Raj Subramaniam said his company can do well even if there is a supply chain shakeup. President-elect Donald Trump has threatened to drastically hike import tariffs for several countries, especially China, and these moves would likely disrupt global supply chains. FedEx reported a mixed quarter Thursday after close and announced it plans to spin off its freight business into another publicly traded company, FedEx Freight.

'As the supply chain patterns change, we are here, there and everywhere,' he said.'That's the advantage people sometimes miss, the fact that we have a scaled network in place, provides us an advantage in these dynamic timesPresident-elect Donald Trump has threatened to drastically hike import tariffs for several countries, especially China, and these moves would likely disrupt global supply chains. While Subramaniam conceded that China currently represents roughly 28% to 30% of global manufacturing, he said the good news for FedEx is that its network is global, claiming the company serves 99% of global commerce. This dynamic makes it easier for FedEx to'adapt and move our capacity around' and connect any point in the network to the rest of the world, he continued. Subramaniam also said the company is seeing better-than-expected demand this month. He said he thinks consumers are feeling more bullish and suggested December could be a record month for the Los Angeles port.it plans to spin off its freight business into another publicly traded company, FedEx Freight. Shares climbed more than 8% in extended trading. Subramaniam said the split could help create long-term value for shareholders of both companies. 'We are sitting on global supply chain insights,' he said.'So not only do we want to be a leading transportation network provider, but also a global supply chain technology provider.

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