Need to Know
- FedEx is partnering with online freight marketplace Freightos.com to digitize sales and customs brokerage processes and accommodate mounting pressures from Amazon.
- FedEx Logistics will roll out two Freightos services: WebCargo AcceleRate, a multi-modal rate management and sales digitization platform; and WebCargo Air, an air cargo pricing, quoting, and e-booking service.
- As part of the deal, Freightos will incorporate FedEx Trade Networks digital customs brokerage services for the 150,000-plus global importers and exporters on the Freightos.com shipping marketplace.
- In 2019, FedEx Express delivered an average of 6.2 million packages every day.
- In August of 2019, FedEx stopped delivering Amazon packages through its ground shipping network.
With mounting pressures from Amazon, FedEx is doing all it can to digitize international freight processes. The latest move comes from a mutually beneficial Freightos partnership, where both companies can streamline processes and improve customer experience.
Officially, the partnership is between FedEx Logistics and FedEx Trade Networks Transport & Brokerage subsidiaries and Freightos.com.
Attempting to offer a better digitally-enabled global shipping experience, FedEx will lean on two Freightos services—WebCargo AcceleRate, a multi-modal rate management and sales digitization platform; and WebCargo Air, an air cargo pricing, quoting, and eBooking platform. Together these two services mean that FedEx Logistics users have access to instant global freight pricing, a move that will improve customer service and internal efficiencies.
With more and more businesses looking to upgrade their supply chains and meet the needs of their clients and customers, shipping companies such as FedEx are feeling the crunch when it comes to streamlining services. By working with outside partners such as Freightos to optimize platforms and understand pricing in a more accurate way. FedEx can pass those savings and time onto clients.
To enable smoother international trade for it registered 150,000-plus global importers and exporters, Freightos will incorporate the digital customs brokerage services that FedEx Trade Networks.
“FedEx Logistics brings a focus on compliance and simplicity, along with a globally trusted brand, to customers and importers on Freightos.com,” said John Gazitua, SVP of Cargo Networks for FedEx Logistics in a release. “Through this agreement, the Freightos Group offers digital technology that will improve the overall customer experience.”
The digitization of international freight process through the Freightos.com partnership is just one of the ways the parcel shipping giant is hoping to compete with Amazon. In January 2020, FedEx began offering ground delivery seven days per week for the majority of the US population. FedEx also stopped delivering Amazon packages through its ground network in August 2019.
For the fiscal year of 2019, FedEx generated almost $69.7 billion in revenue and shipped over 2.28 billion packages.