Afternoon Coffee: FedEx cuts more ties to Amazon; Domino’s binges before Brexit; farmers wary of U.S.-China tariffs

FedEx will not renew its ground contract with Amazon, but it will maintain its contract for international deliveries, Bloomberg.com reports, adding:

“The ground-delivery contract with Amazon won’t be renewed when it expires at the end of this month, FedEx said in a statement. The decision quickens the company’s retreat from the largest online retailer just two months after FedEx said its Express unit wouldn’t extend an agreement to fly Amazon’s packages in the U.S.”

FedEx says “this change is consistent with our strategy to focus on the broader e-commerce market,” as they have begun to see Amazon’s developments for deliveries as a growing threat, reports Supply Chain Dive.

Another story from the Dive looks at a business that may have lost Amazon as a customer and how the business is faring.

XPO Logistics’ CEO has said his company has been "making great, great progress” replacing the lost revenue from a large customer, widely believed to be Amazon, Supply Chain Dive reports. After the company lost the client, it resulted in many warehouses downsizing operations. The company remains hopeful as its technology investments have begun to pay off and “have the potential to generate $700 million to $1 billion in profit growth by 2022, according to a slide deck released with the recent earnings,” the Dive reports.

Domino’s stockpiles ingredients in UK

In preparation for a bad Brexit result, the U.S. pizza chain Domino’s is stockpiling ingredients in the UK in case supplies run short, CNN reports. The UK may leave the European Union at the end of October without formal trade terms in place, complicating things for supply chains.

U.S.-China trade war dominates Minnesota Farmfest

Twincities.com reports that the U.S.-China tariff war was at the center of discussions on the first day of Farmfest in Minnesota. Farm and agriculture sector leaders such as Joel Schreurs, a soybean farmer, say they have been “stuck in the crossfire” of a trade war. The taxes on imported goods hit both farmers in the Midwest and the businesses in those communities.

Share on Procurious

Discuss this:

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.