FedEx is prioritising heavier, longer-distance, and higher-margin parcels (like Oura Rings) while de-emphasising short-zone, lightweight e-commerce parcels.
With network utilisation at its highest since the pandemic, FedEx is maximising truck loads and fixed-cost absorption, allowing the company to focus on shipments that deliver the best financial returns.
Smaller or low-value parcels may face slower service or higher costs, while high-value shipments benefit from faster, more reliable delivery, signalling a shift from volume growth to sustainable profitability.

FedEx is sending a clear signal to shippers. At its investor day, Chief Customer Officer Brie Carere put it simply — and memorably:

“If you’re shipping T-shirts, FedEx might not be for you, but if you were shipping Oura Rings, FedEx is for you.”

That line captures the essence of the company’s strategy. FedEx is now concentrating on high-value, heavier, and longer-distance shipments, while stepping back from the short-zone, lightweight parcels that dominate much of the e-commerce boom.

Sharper strategy

This isn’t entirely new territory for FedEx. The company has been pushing into higher-margin sectors like healthcare and automotive for some time. But Thursday’s presentation made it clear that the strategy has become more deliberate and data-driven.

Carere highlighted that 70 percent of FedEx Ground revenue comes from shipments travelling over 300 miles. That number underlines the shift toward routes that really drive profitability. At the same time, lighter parcels under a pound — which fuel much of the broader e-commerce growth — are now a lower priority. FedEx is comfortable letting that segment grow more slowly, focusing instead on maximising returns over chasing volume.

Smarter management

FedEx’s network is also being used more efficiently. Utilisation is at its highest since the COVID‑19 pandemic, allowing the company to manage volume growth without stretching resources too thin. Fuller trucks and better absorption of fixed costs give FedEx the flexibility to choose the shipments that matter most financially.

“This approach allows us to pick and choose the volume that makes the most sense,” Carere explained. The message is clear: FedEx is moving from chasing market share to driving sustainable profitability.

What this means

For smaller or low-value shippers, the recalibration could translate to slower service or higher costs. But for customers sending high-value or long-distance parcels, it could mean faster, more reliable delivery and better prioritisation.

Industry observers suggest this approach might also open the door for competitors like UPS, DHL, and regional carriers to capture the lighter parcel market. Meanwhile, the broader logistics landscape may see a clearer divide between premium, high-margin shipments and commodity e-commerce parcels, with knock-on effects for pricing and service standards.

FedEx’s bottom line is straightforward: profitability now trumps volume. For shippers, the takeaway is equally clear — understand your parcels, and align your business with the carrier’s priorities if you want to get the most out of its services.

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