In a Thursday interview with CNBC’s Jim Cramer, FedEx CEO Raj Subramaniam mentioned his firm can do effectively even when there’s a provide chain shakeup.
“As the provision chain patterns change, we’re right here, there and in every single place,” he mentioned. “That’s the benefit folks typically miss, the truth that we’ve got a scaled community in place, offers us a bonus in these dynamic occasions.”
President-elect Donald Trump has threatened to drastically hike import tariffs for a number of international locations, particularly China, and these strikes would doubtless disrupt world provide chains. While Subramaniam conceded that China at the moment represents roughly 28% to 30% of worldwide manufacturing, he mentioned the excellent news for FedEx is that its community is world, claiming the corporate serves 99% of worldwide commerce.
This dynamic makes it simpler for FedEx to “adapt and transfer our capability round” and join any level within the community to the remainder of the world, he continued. Subramaniam additionally mentioned the corporate is seeing better-than-expected demand this month. He mentioned he thinks shoppers are feeling extra bullish and steered December could possibly be a report month for the Los Angeles port.
FedEx reported a combined quarter Thursday after shut and announced it plans to spin off its freight enterprise into one other publicly traded firm, FedEx Freight. Shares climbed greater than 8% in prolonged buying and selling. Subramaniam mentioned the break up may assist create long-term worth for shareholders of each corporations.
“We are sitting on world provide chain insights,” he mentioned. “So not solely will we need to be a number one transportation community supplier, but in addition a world provide chain expertise supplier.”
