FedEx reports that the US-China airfreight market has had very limited effect on them so far. However, the uncertainty undermines this airfreight market confidence and could lead to customers to shift their supply chains. Their latest quarterly results were discussed by the EVP & Chief Marketing and Communications officer revealed that the US-China airfreight lane bi-directionally comprises about 2% of the FedEx total revenues.
The tariffs that were implement so far only makes up less than 10% of that volume. The new round of $200B of tariffs on inbound airfreight to us from China represents about 25% of that 2%. However if the situation continues for any amount of time, they do expect customers to diversify their transportation supply chains and maybe some the existing trade patterns for transportation may change.
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