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FedEx Corp. - Delivery Service - Category Main Page
(901)
818-7500
942
South Shady Grove Road
Memphis, TN 8120
www.fedex.com
Sales
$24.7 billion
Business Description
FedEx Corp. is a leading global provider of transportation, e-commerce and supply chain
management services. Services offered by FedEx companies include worldwide
express delivery, ground small-package delivery, less-than-truckload ("LTL")
freight delivery, global logistics, supply chain management and customs
brokerage, as well as trade facilitation and electronic commerce solutions.
FedEx offers its integrated business solutions through a portfolio of
operating companies, including:
• Federal Express Corporation ("FedEx Express"). FedEx Express is the
world's largest express transportation company, offering time-certain
delivery within one to three business days and serving markets that comprise
more than 90% of the world's gross domestic product.
• FedEx Ground Package System, Inc. ("FedEx Ground"). FedEx Ground is North
America's second largest provider of business and residential
money-back-guaranteed small-package ground delivery service. FedEx Ground
provides low-cost residential delivery to nearly 100% of U.S. residences
through its FedEx Home Delivery service.
• FedEx Freight Corporation ("FedEx Freight"). FedEx Freight is the largest
regional LTL carrier in the U.S. and the market leader in providing next-day
and second-day regional LTL freight services.
• FedEx Custom Critical, Inc. ("FedEx Custom Critical"). FedEx Custom
Critical is North America's largest surface-expedited carrier, offering
non-stop, time-specific, door-to-door delivery of time-critical and
special-handling shipments within the United States, Canada and Europe.
• FedEx Trade Networks, Inc. ("FedEx Trade Networks"). FedEx Trade Networks
facilitates global transportation and logistics services by providing
full-service customs brokerage, trade advisory services, information
technology, e-clearance and air and ocean freight forwarding solutions.
• FedEx Corporate Services, Inc. ("FedEx Services"). FedEx Services
comprises the consolidated sales, marketing and technology support for FedEx
Express and FedEx Ground and offers extensive supply chain management
solutions through its FedEx Supply Chain Services, Inc. subsidiary.
FedEx
Companies
The following describes in more detail the business of each of our principal
operating companies, as well as FedEx Services:
FedEx Express
Introduction
FedEx Express invented express distribution in 1973 and remains the industry
leader, providing rapid, reliable, time-definite delivery of packages,
documents and freight to 214 countries. FedEx Express offers time-certain
delivery within one to three business days, serving markets that comprise
more than 90% of the world's gross domestic product through door-to-door,
customs-cleared service, with a money-back guarantee. FedEx Express's
extensive air route authorities and transportation infrastructure, combined
with its leading-edge information technologies, make it the world's largest
express transportation company. FedEx Express employs more than 134,000
employees and operates approximately 53,500 drop-off locations, 643 aircraft
and 48,000 vehicles and trailers in its integrated global network.
Delivery Services
U.S. Domestic
FedEx Express offers three U.S. overnight delivery services: FedEx First
Overnight®, FedEx Priority Overnight® and FedEx Standard Overnight®.
Overnight document and package service extends to virtually the entire
United States population. Packages and documents are either picked up from
shippers by FedEx Express couriers or dropped off by shippers at FedEx
Express sorting facilities, FedEx World Service Centers®, FedEx® Drop Boxes,
FedEx ShipSites® or FedEx Authorized ShipCenters® strategically located
throughout the country. Two U.S. deferred services are available for less
urgent shipments: FedEx 2Day® and FedEx Express Saver®. FedEx SameDay®
service is for urgent shipments up to 70 pounds to virtually any U.S.
destination.
Domestic shipments are backed by money-back guarantees and are used by
customers primarily for shipment of time-sensitive documents and goods,
including high-value machines and machine parts, computer parts, software
and consumer items. FedEx Express handles virtually every shipment from
origin to destination.
FedEx Express also offers express freight services to handle the needs of
the time-definite freight market. FedEx Express offers customers the option
of one-, two- or three-business day service backed by two money-back
guarantees. Shipments must weigh 151 lbs. to 2,200 lbs., and be forkliftable,
stackable, banded and shrinkwrapped. FedEx 1DaySM Freight offers 10:30 a.m.
delivery on the next business day in many areas of the continental United
States, including Alaska. FedEx 2Day Freight® offers noon delivery in two
business days in all 50 states. FedEx 3Day® Freight offers 3:00 p.m.
delivery within three business days in every state except Alaska and Hawaii.
International
FedEx Express offers various international package and document delivery
services to 214 countries, as well as international freight services. These
services include: FedEx® International Next Flight, FedEx International
First®, FedEx International Priority® ("IP"), FedEx International Economy®,
FedEx International Priority DirectDistribution®, FedEx International
Priority Plus®, FedEx International MailService®, FedEx International
Priority® Freight, FedEx International Economy® Freight, FedEx International
Express Freight®, FedEx International Airport-to-AirportSM, and the FedEx
ExpressclearSM Electronic Customs Clearance and FedEx International Broker
Select® service feature options. All services, except FedEx International
Express Freight® and FedEx International Airport-to-AirportSM, are backed by
FedEx Express's money-back guarantee.
FedEx Express's super express freighter (Super X) routing offers
next-business-day 10:30 a.m. express cargo service from Asia to the United
States. The routing features a non-stop flight from Osaka, Japan to Memphis,
Tennessee, which has made later cutoff times and shorter transit times
available to markets in the South Pacific and areas in Western Japan. In
addition, our customers enjoy later cutoff times and next-business-day
service among 27 major Asian markets, because of our intra-Asian flights
connecting through the FedEx AsiaOne® hub in Subic Bay, Philippines. During
2003, FedEx Express began utilizing recently awarded interim frequencies to
Hong Kong, allowing FedEx Express to offer even greater access to Asia from
the U.S. and Europe as well as within the Asia-Pacific region.
Responding to growing demand for reduced transit times, later customer
pickups and earlier deliveries in key global markets, FedEx Express
reconfigured its international express transportation network during 2003.
In one example of these service enhancements, FedEx Express increased its
capacity for heavyweight shipments between Asia and Europe. This change
enables FedEx Express to offer later cutoff times for shipments to Western
Europe and earlier flight arrivals to Paris, thereby providing more
extensive connectivity through the FedEx EuroOne® network to various
European destinations for Asian shippers.
FedEx Express offers the most comprehensive international freight service in
the industry, backed by a money-back guarantee, real-time tracking and
advanced customs clearance. FedEx Express's international freight services
may be used by customers to combine pickup, linehaul and delivery options to
meet their daily business needs. The following FedEx International Priority®
Freight delivery options are available for worldwide shipments: Door to
Airport (DTA); Airport to Airport (ATA); Airport to Door (ATD); and Door to
Door (DTD). FedEx International Priority® Freight and FedEx International
Economy® Freight provide service to approximately 55 and 45 countries,
respectively.
Through an alliance with La Poste, one of the world's leading postal
organizations, customers of Chronopost International, a subsidiary of La
Poste, have access to the FedEx Express air network.
Additionally, FedEx customers in France and Belgium have benefited from the
enhanced ground infrastructure of La Poste.
For information regarding FedEx Express's e-shipping tools and solutions,
see "FedEx Services—Shipping Management Solutions." In addition, detailed
information about all of FedEx Express's delivery services can be found on
the FedEx Web site at fedex.com. The information on our Web site, however,
does not form part of this Report.
U.S. Postal Service Agreements
Under two agreements with the U.S. Postal Service that run through August
2008—one for domestic air transportation of postal shipments, and the other
for placement of FedEx Drop Boxes at U.S. Post Offices:
• FedEx Express provides air capacity for transportation of Priority Mail,
Express Mail and First Class Mail for the U.S. Postal Service, carrying
predominately unitized shipments which are pre-sorted by the Postal Service
into sacks, trays, tubs or containers. The air transportation agreement took
effect in August 2001 and was amended in 2003 to allow us to continue
carrying incremental pounds of mail through May 29, 2004 at higher committed
volumes than required under the original agreement.
• FedEx Express has the option to place a self-service drop box in every
U.S. Post Office location. FedEx Express began a national roll-out of the
drop box program in June 2001 and, as of May 31, 2003, had placed
approximately 5,000 drop boxes at U.S. Post Offices in approximately 325
metropolitan areas.
Pricing
FedEx Express periodically publishes list prices in its Service Guides for
the majority of its services. In general, during 2003, U.S. shipping rates
were based on the service selected, destination zone, weight, size, any
ancillary service charge and whether the shipment was picked up by a FedEx
Express courier or dropped off by the customer at a FedEx Express location.
International rates are based on the type of service provided and vary with
size, weight and destination. FedEx Express offers its customers discounts
generally based on actual or potential average daily revenue produced.
FedEx Express has a dynamic fuel surcharge for all U.S. domestic and U.S.
outbound shipments and for shipments originating internationally, where
legally and contractually possible. The surcharge percentage is subject to
monthly adjustment based on the spot price for jet fuel. For example, the
fuel surcharge for June 2003 was based on the spot price for jet fuel
published for April 2003. Changes to the FedEx Express fuel surcharge, when
calculated according to the spot price for jet fuel and FedEx Express
trigger points, are applied effective from the first Monday of the month.
These trigger points may change from time to time, but information on the
fuel surcharge for each month is available at fedex.com two weeks before the
surcharge is applicable.
Operations
FedEx Express's global transportation and distribution services are provided
through an extensive worldwide network consisting of numerous aviation and
ground transportation operating rights and authorities, 643 aircraft,
approximately 48,000 vehicles and trailers, sorting facilities, FedEx World
Service Centers, FedEx Drop Boxes, FedEx ShipSites and FedEx Authorized
ShipCenters, as well as sophisticated package tracking, billing and
communications systems.
FedEx Express's primary sorting facility, located in Memphis, serves as the
center of the company's multiple hub-and-spoke system. A second national hub
is located in Indianapolis. In addition to these national hubs, FedEx
Express operates regional hubs in Newark, Oakland and Fort Worth and major
metropolitan sorting facilities in Los Angeles and Chicago. Facilities in
Anchorage, Paris and Subic Bay, Philippines, serve as sorting facilities for
express package and freight traffic moving to and from Asia, Europe and
North America. Additional major sorting and freight handling facilities are
located at Narita Airport in Tokyo, Stansted Airport outside London and
Pearson Airport in Toronto. Facilities in Subic Bay and Paris are also
designed to serve as regional hubs for their respective market areas.
Throughout its worldwide network, FedEx Express operates city stations and
employs a staff of customer service agents, cargo handlers and couriers who
pick up and deliver shipments in the station's service area. In some cities,
FedEx Express operates FedEx World Service Centers which are staffed,
store-front facilities located in high-traffic, high-density areas. Unmanned
FedEx Drop Boxes provide customers the opportunity to drop off packages at
locations in office buildings, shopping centers, corporate or industrial
parks and outside U.S. Post Offices. FedEx Express has also formed alliances
with certain retailers to extend this customer convenience network to
drop-off sites in retail stores. In international regions where low package
traffic makes FedEx Express's direct presence less economical, Global
Service Participants have been selected to complete deliveries and to pick
up packages.
We are beginning to equip FedEx Express couriers with the new FedEx®
PowerPad to provide wireless access to the FedEx network. FedEx® PowerPad,
which uses Bluetooth wireless technology, enhances and accelerates the
package information available to customers by enabling couriers to
wirelessly send and receive near real-time information and updates from any
location. Every time a package is scanned, the FedEx® PowerPad immediately
uploads information into FedEx COSMOS®, FedEx Express's advanced package
tracking and tracing system. FedEx COSMOS® provides proof-of-delivery
information, an electronically reproduced airbill for the customer and
information regarding the location of a package within FedEx Express's
system. For international shipments, FedEx Express has developed FedEx
ExpressclearSM, a worldwide electronic customs clearance system, which
speeds up customs clearance by allowing customs agents in destination
countries to review information about shipments before they arrive.
Fuel Supplies and Costs
During 2003, FedEx Express purchased aviation fuel from various suppliers
under contracts that vary in length and which provide for specific amounts
of fuel to be delivered. The fuel represented by these contracts is
purchased at market prices that may fluctuate daily.
Approximately 15% of FedEx Express's requirement for vehicle fuel is
purchased in bulk. The remainder of FedEx Express's requirement is satisfied
by retail purchases with various discounts.
We believe that, barring a substantial disruption in supplies of crude oil,
our fuel purchase contracts will ensure the availability of an adequate
supply of fuel for FedEx Express's needs for the immediate future. A
substantial reduction of oil supplies from oil-producing regions or refining
capacity, or other events causing a substantial reduction in the supply of
aviation fuel, however, could have a significant adverse effect on FedEx
Express.
Competition
The express package and freight markets are both highly competitive and
sensitive to price and service. The ability to compete effectively depends
upon price, frequency and capacity of scheduled service, ability to track
packages, extent of geographic coverage, reliability and innovative service
offerings. Competitors in these markets include other package delivery
concerns, principally United Parcel Service, Inc. ("UPS"), DHL Worldwide
Express, Airborne Express, passenger airlines offering express package
services, regional express delivery concerns, airfreight forwarders and the
U.S. Postal Service. FedEx Express's principal competitors in the
international market are DHL Worldwide Express, UPS, foreign postal
authorities such as Deutsche Poste and TNT Post Group, passenger airlines
and all-cargo airlines.
FedEx Express currently holds certificates of authority to serve more
foreign countries than any other United States all-cargo air carrier and its
extensive, scheduled international route system allows it to offer
single-carrier service to many points not served by its principal all-cargo
competitors. This international route system, combined with an integrated
air and ground network, enables FedEx Express to offer international
customers more extensive single-carrier service to a greater number of U.S.
domestic points than can be provided currently by competitors. Many of FedEx
Express's competitors in the international market, however, are
government-owned, -controlled, or -subsidized carriers which may have
greater resources, lower costs, less profit sensitivity and more favorable
operating conditions than FedEx Express.
FedEx
Ground
Introduction
By maintaining a low cost structure and efficiently using information
technology, FedEx Ground has become North America's second largest provider
of business and residential money-back-guaranteed ground package delivery
services. FedEx Ground serves customers in the small-package market in North
America, focusing primarily on business and residential delivery of packages
weighing up to 150 pounds. FedEx Ground provides ground service to 100% of
the United States population and overnight service to approximately 92% of
the United States population. Through a subsidiary, service is also provided
to 100% of the Canadian population. FedEx Ground also offers service to
Puerto Rico, Alaska and Hawaii via a ground/air network operation
coordinated with other transportation providers.
In 2003, FedEx Ground unveiled a $1.8 billion, six-year expansion plan to
nearly double its daily package volume capacity from 2.5 million to 4.8
million by the end of 2009. The multi-phase plan includes the addition of 10
new central distribution hubs and the expansion of 23 existing central
distribution hubs, as well as the expansion or relocation of more than 300
existing facilities. To meet its long-term package processing needs, FedEx
Ground expects to open new hubs in the Memphis, Dallas and Cincinnati areas
and in Hagerstown, Maryland by 2006. Six more new hubs will be strategically
located by the end of 2009.
Along with the continuing expansion of FedEx Ground's business-to-business
service, the increasing popularity of the FedEx Home Delivery service has
driven the recent growth in FedEx Ground's package volumes and financial
results. In March 2000, FedEx Ground began providing its FedEx Home Delivery
service, which now reaches nearly 100% of U.S. residences. To maintain a low
cost structure, FedEx Home Delivery takes advantage of the FedEx Ground
network for pickup, package sorting and linehaul operations. FedEx Home
Delivery is the only service dedicated exclusively to meeting the delivery
needs of residential customers.
FedEx Ground provides other specialized transportation services to meet
specific customer requirements in the small-package market. FedEx Ground
conducts its operations primarily with 15,300 owner-operated vehicles and
17,600 company-owned trailers. Competition for high-volume, profitable
business focuses largely on providing competitive pricing and dependable
service. FedEx Ground provides a money-back guarantee on most ground
deliveries within the continental United States.
Detailed information about FedEx Ground's delivery services, including FedEx
Home Delivery, can be found at the FedEx Web site at fedex.com. The
information on our Web site, however, does not form part of this Report.
FedEx Home Delivery
FedEx Home Delivery is dedicated to the needs of businesses specializing in
the business-to-consumer marketplace by providing unique and compelling
service offerings at a low cost. With this service, we provide a
money-back-guaranteed solution to the rapidly increasing number of
businesses that ship large volumes to residential customers. These
customers, in general, want more economical and convenient home delivery
options. FedEx Home Delivery service is:
• Unique, convenient and customized—FedEx Home Delivery offers a suite of
service options, most of which are not offered by competitors, including
extended evening delivery, Saturday delivery, and premium services, such as
day-specific, signature and appointment delivery. FedEx Home Delivery brings
unmatched services to residential shippers and their customers and also
offers a money-back guarantee.
• Efficient—FedEx Home Delivery takes advantage of the FedEx Ground network
for pickup, package sorting and linehaul operations to maintain a low cost
structure.
• Dedicated to deliveries—FedEx Home Delivery is different from the
competition because it is dedicated to the delivery side of the equation.
Hence, it is able to focus on meeting the distinct customer interface
requirements of residential customers.
• A superior e-commerce solution—FedEx Home Delivery gives "e-tailers" an
option that combines reliability with cost-effective ground transportation.
FedEx Home Delivery responds to business-to-consumer demand for a better
ground delivery solution for the residential market. FedEx Home Delivery
introduced new ideas to business-to-consumer delivery to help retailers
address mounting fulfillment challenges. This service expansion offers an
economical and customized residential solution to fit the individual needs
of customers. In September 2002, FedEx Home Delivery completed the build-out
of its national network, enabling it to reach nearly 100% of U.S.
residences.
Pricing
FedEx Ground periodically publishes list prices in its Service Guide for the
majority of its services. In general, during 2003, U.S. shipping rates were
based on the service selected, destination zone, weight, size, any ancillary
service charge and whether the shipment was picked up by a FedEx Ground
contractor or dropped off by the customer at a FedEx Ground location.
FedEx Ground has a dynamic fuel surcharge, which applies to all shipments.
The surcharge percentage is subject to monthly adjustment based on a rounded
average of the national U.S. on-highway average price for a gallon of diesel
fuel as published monthly by the U.S. Department of Energy. For example, the
fuel surcharge for June 2003 was based on the average diesel fuel price
published for April 2003. Changes to the FedEx Ground fuel surcharge,
calculated according to the rounded index average and FedEx Ground trigger
points, are applied effective from the first Monday of the month. These
trigger points may change from time to time, but information on the fuel
surcharge for each month is available at fedex.com two weeks before the
surcharge is applicable.
Operations
FedEx Ground uses advanced automated sorting technology to streamline the
handling of approximately 2.2 million daily packages. FedEx Ground also
utilizes software systems and Internet-based applications to offer its
customers new ways to connect internal package information with external
delivery information. FedEx Ground provides multiple-carrier shipment
tracing and proof-of-delivery signature functionality on the FedEx Web site
(fedex.com). For additional information regarding FedEx Ground's e-shipping
tools and solutions, such as the newly introduced FedEx Consolidated Return
ServiceSM, see "FedEx Services—Shipping Management Solutions."
Like FedEx Express, FedEx Ground utilizes a multiple hub-and-spoke sorting
and distribution system. As of May 31, 2003, FedEx Ground operated 509
facilities in the U.S. and Canada. FedEx Ground is also available as a
service option at many domestic FedEx Express facilities and FedEx
Authorized ShipCenters.
FedEx Ground's 27 hubs are equipped with sophisticated package-sortation
technology, with average processing speeds of 17,300 packages per hour.
Using overhead laser scanners, hub conveyors electronically guide packages
to their appropriate destination chute, where they are loaded for transport
to their destination terminals for local delivery. FedEx Ground is still the
only U.S. ground carrier to operate a fully automated hub network for
greater efficiency and package integrity. In 2002, FedEx Ground completed
implementation of an $80 million data collection system, which included the
installation of on-van computers, enhanced handheld scanners for
electronically capturing delivery information, wireless networks at every
FedEx Ground facility and wearable ring scanners. Collectively, this
technology provides customers with greater package visibility through more
detailed tracking and faster delivery confirmation, including signature
proof of delivery.
To provide the FedEx Home Delivery service, FedEx Ground is leveraging its
existing pickup operation and hub and linehaul network. As of May 31, 2003,
FedEx Ground had 298 locations supporting the FedEx Home Delivery service.
FedEx Ground plans to add more FedEx Home Delivery locations during 2004,
many of which are being co-located with existing FedEx Ground facilities,
which is reducing the cost of expanding the FedEx Home Delivery service.
FedEx Freight
FedEx Freight was established in 2001 to serve as the holding company for
American Freightways and Viking Freight. In 2002, FedEx Freight began a
program to rebrand its two operating companies as FedEx Freight East
(formerly American Freightways) and FedEx Freight West (formerly Viking
Freight). Through these two operating companies, FedEx Freight provides
regional LTL freight service to virtually all U.S. ZIP Codes, including
Alaska and Hawaii. Internationally, FedEx Freight serves Canada, Mexico,
Puerto Rico, Central and South America, the Caribbean, Europe and Asia via
alliances and purchased transportation. The primary focus of FedEx Freight
is LTL regional transportation, with day-definite service in one to two
business days and timely and accurate shipment information. FedEx Freight
also offers a premium service between all regions in the U.S., providing
seamless coverage and industry-leading transit times.
During 2003, FedEx Freight further reduced transit times in a number of
regions across the U.S. in a continuing focus on fast-cycle distribution.
Currently, nearly 90% of FedEx Freight shipments are delivered next- or
second-business-day. FedEx Freight also has a fully integrated Web site (www.fedexfreight.fedex.com),
which combines the resources of its operating company Web sites to create a
one-stop LTL information source. The Web site and FedEx Freight's other
e-tools, including a bill of lading generator and e-mail delivery
notification, make freight shipping easier and bring customers closer to
their own account information.
FedEx Freight provides tailored shipping solutions to help shippers meet
tight deadlines. Through its many service offerings, FedEx Freight can match
customers' time-critical needs with reduced transit times, after hours pick
up or delivery, or same day delivery. One of its many service offerings is
FedEx Freight EZ Flyer®, which provides fast, seamless interregional
coverage throughout the continental U.S. Through its FedEx Freight Next Day
PlusSM service, FedEx Freight delivers shipments via truck in selected lanes
up to 900 miles by the next business day. FedEx Freight Next Day Plus is
designed for businesses that are challenged to keep inventories low or to
get their products to specific markets consistently ahead of the
competition. FedEx Freight also has programs for customers' urgent
situations that require expedited delivery.
During 2003, FedEx Freight leveraged its relationships with other FedEx
operating companies to meet the increasingly global needs of customers. In
cooperation with FedEx Trade Networks and Frans Maas, a leading provider of
freight forwarding and logistics services, FedEx Freight now offers LCL
service to and from Europe. The U.S. inland transportation is provided by
FedEx Freight, with FedEx Trade Networks coordinating the ocean portion of
the move and Frans Maas handling European ocean coordination and ground
transportation. FedEx Freight has also collaborated with FedEx Trade
Networks and FedEx Ground to serve Asia. FedEx Trade Networks facilitates
the preparation and containerization of shipments in Asia and manages the
ocean portion of the service, as well as customs clearance and document
preparation, while FedEx Freight and FedEx Ground handle the inland
distribution transportation once shipments are cleared at U.S. container
freight stations in gateway cities.
Readers of Logistics Management and Distribution magazine voted to award
FedEx Freight the "Quest for Quality Award for 2002," the seventeenth
consecutive year a FedEx Freight company has received this award. In April
2003, Lowe's Home Improvement Warehouse awarded a Gold Team Award for
Outstanding Service to FedEx Freight.
As of May 31, 2003, FedEx Freight had approximately 21,800 employees
operating approximately 36,000 vehicles and trailers from a network of 317
service centers. Douglas G. Duncan is the President and Chief Executive
Officer of FedEx Freight, which is based in Memphis, Tennessee. FedEx
Freight's primary multiregional competitors are Con-Way Transportation
Services, a subsidiary of CNF Inc., and USF Corporation.
FedEx Custom Critical
FedEx Custom Critical, North America's largest surface-expedited carrier,
offers non-stop, time-specific, door-to-door delivery of time-critical and
special-handling shipments within the United States, Canada and Europe.
Using a network of about 2,000 vehicles, FedEx Custom Critical provides
pickup and delivery services throughout the contiguous United States and
Canada and within Europe. Most shipments are picked up in less than 90
minutes after the customer places the order. Each shipper has exclusive
vehicle usage, eliminating freight handling. FedEx Custom Critical
continuously monitors shipments through Customer Link®, an integrated
proprietary shipment control system with two-way satellite communications.
Through the Shipping Toolkit feature of FedEx Custom Critical's Web site (www.fedexcustomcritical.com),
customers can quote, ship, track and map shipments, as well as view and
print out copies of a shipment's bill of lading, proof of delivery and
invoice.
From FedEx Custom Critical's 229 ExpressCenters, service is available 24
hours a day, 365 days a year, including weekends and holidays, at no extra
cost. If at any time during transport FedEx Custom
Critical is more than 15 minutes late, both the shipper and the consignee
are notified. If FedEx Custom Critical is more than two hours late on
delivery, it will refund the customer 25% of the freight charges. If FedEx
Custom Critical is more than four hours late on delivery, it will refund the
customer 50% of the freight charges. In many cases, FedEx Custom Critical
offers a faster and less expensive alternative to heavyweight airfreight.
More than 96% of shipments are delivered to the customer within 15 minutes
of FedEx Custom Critical's time-specific promise.
In 2003, FedEx Custom Critical changed the name of its CharterAir® division
to Air Expedite to reflect the expanded portfolio of expedited air services
offered by this division. One such offering is its Point-to-Point
Air-Freight Service, through which FedEx Custom Critical exclusive-use
vehicles provide pickups and deliveries to customers' facilities and FedEx
Express handles the airlift. Point-to-Point customers benefit from later
cutoff times and earlier deliveries.
FedEx Custom Critical's Surface Expedite division provides non-stop,
door-to-door transport of critical shipments. FedEx Custom Critical's White
Glove Services® division specializes in the transport of high-value
products, medical and electronic equipment, tradeshow exhibits,
temperature-sensitive commodities and high-security shipments. FedEx Custom
Critical's Air Expedite division provides expedited air solutions to meet
customers' critical delivery times. Surface Expedite, White Glove and Air
Expedite services are also available through FedEx Custom Critical Europe,
which is based in Maastricht, the Netherlands. With continuous monitoring of
shipments, two-way satellite communications and multilingual agents and
drivers, FedEx Custom Critical Europe provides expedited services almost
anywhere in Europe. FedEx Custom Critical also transports antique cars, race
cars and other specialty autos, as well as cars owned by collectors, sports
figures and celebrities, through its Passport Transport subsidiary.
FedEx Custom Critical is headquartered in Green, Ohio. John G. Pickard is
the President and Chief Executive Officer of FedEx Custom Critical. FedEx
Custom Critical has approximately 600 employees and 2,200 owner-operators.
FedEx Custom Critical's primary competitors are ConWay NOW, Panther II
Transportation, Menlo Worldwide Expedite!, Landstar Express America, TST
Expedited Services, Yellow Exact Express and Tri-State Expedited Service.
FedEx Trade Networks
FedEx Trade Networks provides services for international businesses and is
the holding company for FedEx Trade Networks Transport & Brokerage (formerly
Tower Group International, Inc.), Caribbean Transportation Services and
FedEx Trade Networks Trade Services, which includes World Tariff, Limited.
G. Edmond Clark is the President and Chief Executive Officer of FedEx Trade
Networks, which is based in Memphis, Tennessee. FedEx Trade Networks'
primary competitors are U.S.-based customs brokers and freight forwarders,
such as UPS Freight Services (formerly Fritz Companies, Inc.), Expeditors
International of Washington, Inc. and EGL, Inc. (operating under the name
EGL Eagle Global Logistics).
FedEx Trade Networks Transport & Brokerage
FedEx Trade Networks Transport & Brokerage, formerly Tower Group, is a
leading provider of international trade services, specializing in customs
brokerage and international freight forwarding. Its value-added products and
services include Global Trade Data, an information tool that allows
customers to track and manage imports. In cooperation with other FedEx
operating companies, FedEx Trade Networks offers three new bundled services:
FedEx Trade Networks Ocean-Ground DistributionSM,
FedEx Trade Networks Air-Ground DistributionSM and FedEx Trade Networks
Ocean Transport. FTN Transport & Brokerage expanded its customs clearance
operations in 2002 by acquiring certain express customs clearance operations
of Fritz Companies, Inc. These acquired operations provide customs clearance
services exclusively for FedEx Express in three United States locations. FTN
Transport & Brokerage has an alliance with Frans Maas, a leading European
provider of international freight forwarding and logistics services, to
provide door-to-door air and ocean forwarding transportation services
between Europe and North America, as well as similar alliances with S-Net
Freight (Holdings) Pte Ltd, an Asian airfreight forwarder, and Capital
Distribution Services Group (CDS), an Asian ocean freight forwarder.
Gerald P. Leary is the President and Chief Executive Officer of FTN
Transport & Brokerage, which is based in Buffalo, New York, and has
approximately 3,300 employees and 100 offices throughout North America.
Offices are also maintained in major Asian markets through dedicated agents.
Caribbean Transportation Services
Caribbean Transportation Services is a leading provider of airfreight
forwarder services between the United States and Puerto Rico, specializing
in arranging the shipment of heavyweight and oversized cargo. Caribbean
Transportation Services, which also offers service to the Dominican
Republic, provides several delivery options for door-to-door or
airport-to-airport airfreight forwarder services, principally to the
medical, pharmaceutical and technology sectors. Richard A. Faieta is the
President and Chief Executive Officer of Caribbean Transportation Services,
which is headquartered in Greensboro, North Carolina. Caribbean
Transportation Services has approximately 325 employees.
FedEx Trade Networks Trade Services
FTN Trade Services provides international trade consulting services,
including assistance with the Customs-Trade Partnership Against Terrorism
(C-TPAT) program, and a set of integrated international shipping resources
known as Global Trade ToolsSM. Global Trade Tools gives large customers
access to a set of applications, from Harmonized System (HS) classification
to denied party screening, designed to streamline, automate and simplify the
international shipping process for large customers who require the special
capabilities of FedEx Trade Networks. When integrated into a customer's
supply chain management or logistics system, Global Trade Tools provides a
timely solution to previously paper-intensive and lengthy international
shipping processing. With its focus on large customers, Global Trade Tools
complements FedEx® Global Trade Manager, FedEx Express's Web-based
application designed to help small- and medium-sized businesses.
Through its WorldTariff subsidiary, FTN Trade Services also publishes
customs duty and tax information for 118 customs territories worldwide. It
continuously collects data from the world's customs authorities, then
simplifies, standardizes and translates the data into English. Timely
information from FTN Trade Services provides for logistics optimization and
helps customers calculate the landed cost of international shipments.
G. Edmond Clark is the President of FTN Trade Services, which is based in
Memphis, Tennessee.
FedEx Services
FedEx Services provides a convenient single point of access for many
customer support functions, such as customer service, sales and automation.
Much of the sales, marketing and information technology support for FedEx
Express and FedEx Ground have been combined under FedEx Services to more
effectively sell the entire portfolio of express, ground and e-commerce
services. FedEx Services sells and markets the full portfolio of services
offered by our principal subsidiaries and provides customer-facing solutions
that meet customer needs.
Through FedEx Services, we provide our customers with a high level of
service quality, as evidenced by our ISO 9001 certification for our global
express and ground operations. ISO 9001 registration is required by
thousands of customers around the world. FedEx's global certification,
encompassing the processes of FedEx Express, FedEx Ground and FedEx
Services, enhances our single-point-of-access strategy and solidifies our
reputation as the quality leader in the transportation industry. ISO 9001 is
currently the most rigorous international standard for Quality Management
and Assurance. ISO standards were developed by the International
Organization for Standardization in Geneva, Switzerland to promote and
facilitate international trade. More than 150 countries, including European
Union members, the United States and Japan, recognize ISO standards.
T. Michael Glenn is the President and Chief Executive Officer of FedEx
Services, which is based in Memphis, Tennessee. As of May 31, 2003, FedEx
Services had approximately 10,200 employees, including 1,200 employees at
its FedEx Supply Chain Services subsidiary.
E-Business Revolution
We have played a significant role in two business revolutions that have
influenced the emergence of what is now known as e-commerce. First came the
automation revolution. At a time when the world was waking up to the power
of computing technology, we led the charge to automate shipping for our
customers. This technology has afforded key advantages to both our customers
and our transportation operations. We have been the leader in shipping
automation since 1985, when FedEx Express launched the first PC-based
automated shipping system, named FedEx PowerShip®. In 1993, FedEx Ground
launched MultiShip®, the first carrier-supplied customer automation system
to process packages shipped by other transportation providers. In 1994, the
FedEx Web site, fedex.com, became the first Web site to offer online package
tracking. Two years later, in 1996, FedEx Express launched FedEx® Ship
Manager@fedex.com, the first shipping application for express packages on
the Internet. Today, approximately 70% of FedEx shipments are automated.
The second revolution, the integration revolution, is now underway. We are
enabling e-commerce by empowering businesses with integration and supply
chain capabilities that give them added efficiency improvements, supply
chain cost reductions, and the ability to provide better customer service.
These solutions include our FedEx® Ship Manager solution suite, FedEx
NetReturn® and FedEx InsightSM, a revolutionary Web-based application that
offers visibility of current status on inbound, outbound and third-party
payor shipments. In June 2003, we introduced FedEx Consolidated Return
ServiceSM, a FedEx Ground service designed to improve our customers' supply
chain efficiency and enhance the visibility of returned merchandise. This
new, Web-based service links merchants directly to FedEx, giving them
visible information about each returned item from the moment it is dropped
off to the point of final delivery. This visibility helps merchants more
accurately anticipate the delivery of returned items for greater control
over returns inventory. Also, during 2003 FedEx Services and Motorola began
introducing FedEx® PowerPad, a Microsoft Windows-Powered Pocket PC designed
to enhance customer service by providing FedEx Express couriers with online,
near real-time, wireless access to the FedEx network.
Reflecting our emphasis on e-commerce and information technology, during
2003 our Chief Information Officer, Robert B. Carter, received CIO
Magazine's "CIO 20/20 Vision Award," and FedEx received the magazine's
CIO-100 award. In 2002, eWeek magazine ranked FedEx No. 2 in its annual
FastTrack 500 list of leading e-business innovators. In June 2003, Wired
magazine ranked FedEx No. 12 on "The Wired 40," an index of 40 companies
that are "reshaping the global economy." The top-40 list
recognizes companies that demonstrate five business attributes critical to
success in today's high-tech, borderless world: innovation, intelligent use
of new tools, strategic vision, global reach and networked communication.
Shipping-Management Solutions
Our comprehensive e-shipping strategy is driven by our desire for customer
satisfaction. We strive to build solutions that will solve our customers'
business problems with simplicity, convenience, speed and reliability. The
focal point of our strategy is our award-winning Web site, along with our
integration solutions.
At fedex.com, our customers ship packages, determine international
documentation requirements, track package status, pay invoices and more.
During 2002, we launched MyFedEx.com, a customer portal that goes beyond
simple tracking and tracing capabilities to offer personalized services for
registered users. In 2003, we unveiled the first carrier-provided, online
duty and tax estimator, available through FedEx® Global Trade Manager. FedEx
has extended the reach of the fedex.com Web site to be accessible from most
types of hand-held devices, making it faster and easier for U.S. customers
to access real-time package status tracking information and to identify the
nearest drop-off locations. This service is available through most
Web-enabled devices, including mobile telephones, personal digital
assistants and two-way pagers.
For the third consecutive year, fedex.com was honored with the Best
Transportation Web Site award, as well as Standard of Excellence honors, at
the Web Marketing Association's WebAwards held during 2003. FedEx received
the Best Transportation Web Site award for FedEx InsightSM (www.fedex.com/insight)
and the Standard of Excellence award for FedEx® Global Trade Manager in the
international Web site category. FedEx® Global Trade Manager was also
recognized by Computerworld magazine during 2002 as one of the ten most
innovative information technology projects.
Our integration solutions include FedEx® Ship Manager API and Server, FedEx
NetReturn API™, FedEx NetReturn® and the new FedEx Consolidated Return
ServiceSM. We design our e-commerce tools and solutions so they are easily
integrated into our customers' applications, as well as into third-party
software being developed by leading e-procurement, systems integration and
enterprise resource planning companies. This is increasingly important,
given the growing customer trend toward sophisticated multi-carrier shipping
platforms.
The FedEx® Ship Manager suite of solutions offers a wide range of options to
help our customers manage their shipping and associated processes. At their
core, these solutions all offer time-saving shipment processing and printing
capabilities, address books, reporting and tracking. The following
summarizes the shipping-management solutions offered for use with FedEx
Express and FedEx Ground:
• FedEx® Ship Manager at www.fedex.com —a
Web-shipping application, available to customers who have Internet
connectivity and a laser printer. Customers can also arrange for package
pickup, cancel shipments and track package status.
• FedEx® Tracking—allows customers to track the status of FedEx Express and
FedEx Ground packages, as well as FedEx Freight, FedEx Custom Critical and
FedEx Trade Networks shipments, at one time through the FedEx Web site.
• FedEx InsightSM—provides qualifying customers with an enhanced level of
shipment visibility through a Web-based application that dramatically
broadens the amount of real-time status information on inbound, outbound and
third-party payor FedEx Express and FedEx Ground shipments.
• FedEx® Global Trade Manager—helps customers navigate the complexities of
international commerce through the FedEx Web site. Shippers can identify and
prepare many of the appropriate import/export forms based on the commodity
description and country of import and export. FedEx Global Trade Manager
also alerts customers to restrictions on shipping certain commodities, tells
whether the country of import or export is under embargo, provides
information on some special licensing requirements and, through its
"Estimate Duties and Taxes" application, estimates applicable governmental
charges, duties and fees.
• FedEx® Drop-off Locator—allows customers to easily find and view maps of
FedEx drop-off locations through the FedEx Web site. Customers can conduct
searches by address, city, state or ZIP Code to find one of many
full-service and self-service locations worldwide.
• FedEx® Rate Finder—allows customers to determine the cost of shipping
packages from the U.S. to virtually anywhere in the world through the FedEx
Web site.
• FedEx® Ground Service Maps—provides customers with scheduled service days
for FedEx Ground from any ZIP Code in the U.S. or Canada through the FedEx
Web site.
• FedEx® Ship Manager—this shipping software provides customers with a full
range of shipping functions and the speed to handle medium to high package
volumes. It is ideal for mailroom and warehouse environments where shipment
processing is centralized.
• FedEx® Ship Manager API—allows customers to seamlessly integrate FedEx
Express and FedEx Ground services into their online environments by
downloading software from the Internet that will allow them to connect real
time with FedEx when placing shipping orders and scheduling pickup requests.
• FedEx® Ship Manager Server—software that allows for maximum speed and
integration with complex business systems. Can handle extremely high speed
demands. Ideal for multiple users and locations where coordination and
integration are needed across a complex business supply chain and associated
systems.
• FedEx Certified Solution Program—allows access to other carriers and
complete integration solutions through certified third-party automation
solution providers.
• FedEx DirectLink®—enables customers to electronically receive, manage and
remit FedEx Express and FedEx Ground invoicing data.
• FedEx NetReturn®—uses a comprehensive Internet-based returns management
system to allow customers to gain better control over the return inventory
process, resulting in lower costs, improved cycle times and increased
customer service levels.
• FedEx NetReturn APITM—allows customers to seamlessly integrate FedEx
Express and FedEx Ground services into their order management or inventory
management applications by downloading software from the Internet that
provides visibility of their authorized return inventory through automated
dispatching, tracking and reporting throughout the returns process.
• FedEx Consolidated Return ServiceSM—Web-based FedEx Ground service that
makes it easier for consumers to make merchandise returns, while providing
merchants with a low-cost, streamlined return process to help differentiate
their businesses, with enhanced efficiency, visibility and customer service.
Helps merchants better manage their returns process and get real-time
returns information to support order management and marketing efforts.
• FedEx EDI Electronic Invoice and Remittance—integrates with customers'
accounts payable systems to allow them to receive FedEx invoice data
electronically, including data regarding domestic and international
shipments, duties and taxes.
FedEx Supply Chain Services
FedEx Supply Chain Services offers an extensive range of supply chain
management services, including transportation management, fulfillment and
fleet services. FedEx Supply Chain Services has reorganized its business to
place less emphasis on warehousing activities requiring leases and instead
focus on alliance-based and information technology-sensitive business to
meet the needs of its customers and to drive transportation business to the
other FedEx operating companies.
An important element in the value that FedEx Supply Chain Services delivers
to its customers is improved information exchange. FedEx Supply Chain
Services' transportation management programs use advanced electronic data
interchanges to speed communications between customers and their suppliers,
resulting in more cost-effective solutions and enhanced levels of customer
service. Through its fulfillment offerings, FedEx Supply Chain Services
provides supply chain solutions that enable businesses to lower fulfillment
costs, decrease cycle time and improve returns management.
In April 2003, General Motors Corporation named FedEx Supply Chain Services
a 2002 Supplier of the Year. This award is given annually by GM to its best
global suppliers in recognition of their superior performance during the
previous calendar year. This is the fifth consecutive year that GM has
awarded this honor to FedEx Supply Chain Services. In addition, readers of
Logistics Management and Distribution magazine voted to award FedEx Supply
Chain Services the "Quest for Quality Award for 2002" in the Third-Party
Logistics Providers category.
Douglas E. Witt is the President and Chief Executive Officer of FedEx Supply
Chain Services, which is headquartered in Memphis, Tennessee. FedEx Supply
Chain Services' primary competitors include UPS Worldwide Logistics, Exel
Plc, Ryder Integrated Logistics, Menlo Logistics and TNT Logistics.
Air Couriers in the Directory
BAX Global
ABX Air
FedEx
UPS
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