© Reuters. FILE PHOTO: FedEx air cargo planes parked at a FedEx regional hub at Los Angeles International Airport (LAX) in Los Angeles, California, U.S., September 16, 2022. REUTERS/Bing Guan
(Corrects paragraph 2 to say Subramaniam took over as CEO in 2022, not 2023)
NEW YORK (Reuters) – U.S. package delivery giant FedEx Corp (NYSE:) said it has not seen a big shift toward air freight due to disruptions in the Red Sea that have increased transit times for shipments across almost two weeks. “Shipping accounts for 90% of global trade, so even a small change would have an impact, but we haven't seen much yet,” CEO Raj Subramaniam said at the National Retail Conference on Sunday. Subramaniam, who took over the reins as CEO in June 2022, said air freight rates have remained stable. Attacks by the Iranian-backed Houthi militia on container ships in the Red Sea have forced some retailers to stock up on goods ahead of China's Lunar New Year holiday, seeking air or rail alternatives to shipping across the Red Sea in a strive to avoid empty shelves this spring. executives and experts told Reuters.
