With the global economy stagnating and then quickly reopening, the logistics industry has experienced an eventful period. Ports all over the world have experienced unprecedented backups. The demand for commercial air travel is gradually weakening. The loss of sea container cargo has suddenly increased. You may have heard of a very dramatic wrong turn on the Suez Canal.
However, all of these dramatic events have been accompanied by an increase in demand for transportation and package delivery services during the pandemic. For some industry celebrities, this growth is very good for businesses.
The coronavirus pandemic has caused anxiety and changed daily activities in the United States.
FedEx is now the world’s largest publicly traded transportation and logistics company.
According to this year’s Forbes 2000 list of the world’s largest companies, FedEx is now the world’s largest transportation and logistics company, ranking 119th on the list. of the world’s largest companies. General list. The Memphis business, which was ranked 513 last year, won the top spot in the transportation industry from UPS, which was ranked 165.
With the help of record traffic during the holidays, FedEx reports that its revenue for fiscal 2021 will increase by 23% annually. Net profit increased by 183%, and diluted earnings per share increased by 175%. Recently, FedEx has helped distribute more than 100 million doses of COVID19 vaccine to countries around the world.
“Our performance speaks for itself,” FedEx Chief Operating Officer Rajesh Subramaniam said on the company’s latest earnings call. “In December, we achieved the highest monthly total in the company’s history.”
freight giants MollerMaersk and COSCO Shipping are the two largest elevators in the transportation industry among the global top 2000s this year. Maersk jumped to 214th place (from 622th last year), and COSCO rose to 409th place (from 1,133th place).
For companies that are more concerned with transporting people than freight, the past year has been a completely different year. The International Civil Aviation Organization stated in its latest annual report that commercial air travel in 2020 was reduced by 60% and the number of passengers taking flights decreased by 2.7 billion compared to 2019. The organization estimates that this has caused a loss of US $ 370 billion to the aviation industry.
This hit is certainly reflected in the global top 2000. After ranking 263 last year, Delta Air Lines ranked 715 on this year’s list, making it one of the airlines with the largest decline in the transportation and logistics industry. Southwest Airlines, Lufthansa, Air France and Ryanair are other airlines, dropping hundreds of places in the rankings.
During the worst of the pandemic, Delta’s daily cash consumption rate was close to US $ 100 million. Revenue in the second quarter of fiscal 2020 fell 88%, resulting in a loss of $ 5.7 billion. At the time, CEO Ed Bastian stated that it would take more than two years for Delta to fully recover.
By April, signs of recovery began to appear.
“One year after the pandemic started, travelers are becoming more and more confident,” Bastian said in the release of Delta’s latest earnings report. “If the recovery trend continues, we expect that cash in the June quarter will generate positive earnings, and we see a way to return to profitability in the September quarter.”
This year’s Global 2000 also reflects a difficult year for the Japanese railway industry . Chubu Railway fell to 759th after ranking 247th a year ago, while West Japan Railway fell from 663th to 1,308th.
On the other side of the Pacific, Kansas City Southern Railroad ranks 1,382 on this year’s list. It is now the subject of a high-stakes international bidding war.
In March, the Canadian Pacific Railway agreed to acquire the southern part of Kansas City for US$25 billion, just to allow the Canadian National Railways to enter the bureau at a counter-offer of US$30 billion in April. This transaction is likely to be the cornerstone for the simplification of rail mergers in the industry for a decade, such as the mergers of airlines in the 1990s and early 2000s.