“Execution of our long-term growth strategies, customer demand for the unique value of our broad portfolio of solutions and healthy growth in the global economy are driving our performance,” said Frederick W. Smith, FedEx Corp. chairman and chief executive officer. “We expect strong operating performance in each of our transportation segments in the fourth quarter.” Operating results benefited from higher base rates, increased volume at FedEx Ground and FedEx Freight, and a favorable net impact from fuel. Results were negatively affected by significantly higher variable compensation accruals, increased peak-related costs at FedEx Express and the impact of adverse weather. Variable compensation increased in connection with the company’s pay actions that were announced following the passage of the TCJA. These variable compensation accruals include the year-to-date impact of the announced changes. TNT Express integration expenses were also higher. Click Read More below for additional information.
July 1. That’s the expiration date for the contract that covers the International Longshore and Warehouse Union’s more than 22,000 workers at the 29 ports along the West Coast.
Negotiations are ongoing, but experts think it is unlikely a deal will be reached before July 1. (In the past, contract talks have run beyond the expiration date and led to major disruptions to port operations.) The stakes are especially high this time around, however, as the negotiations are playing out amid a backdrop of global supply chain disruptions.
Chain Store Age spoke with Spencer Shute, senior consultant at procurement and supply chain consultancy Proxima, part of Bain & Company, about the possibility of a shutdown and its impact on retailers.
details at: https://www.chainstoreage.com/exclusive-update-west-coast-ports-labor-negotiations