New York, January 14, 2024, The Europe Today: FedEx Corp, the U.S. parcel delivery giant, has reported that it has not witnessed a significant shift to air freight amid disruptions in the Red Sea, which have added almost two weeks to shipping transit times.
Addressing the matter at the National Retail Conference on Sunday, CEO Raj Subramaniam stated, “Shipping over the ocean makes up 90% of global commerce, so even a small change would have an impact, but we haven’t seen much yet.” Subramaniam, who assumed the role of CEO in June 2022, highlighted the stability of air freight rates.
The disruptions in the Red Sea, attributed to Iran-backed Houthi militia attacks on container ships, have prompted some retailers to proactively stock up on goods ahead of China’s Lunar New Year holiday.
This precautionary measure involves seeking air or rail alternatives to transportation via the Red Sea. Executives and experts have noted the urgency in adopting alternative routes to avoid potential empty shelves this spring due to the challenges posed by the Red Sea disruptions.
