Dive Brief:
- FedEx is placing "an extreme emphasis on quality" to attract more business from pharmaceutical shippers, a segment the carrier is currently underpenetrated in, EVP and Chief Customer Officer Brie Carere said during a fiscal Q3 earnings call Thursday.
- "Just last week, we onboarded a healthcare-focused vice president of quality, who brings deep external experience in global healthcare logistics," Carere said as an example of the company's efforts. "This newly created position will help strengthen our global quality governance and harmonize standards across our network."
- Healthcare is among the priority verticals FedEx is targeting to drive more profitable volume into its network. Much of the company's healthcare volume flows through its U.S. priority shipping services, although year-over-year momentum will be challenged in fiscal Q4 since FedEx "took on some very large healthcare customers late last year," Carere said.
Dive Insight:
Pharmaceuticals are a lucrative customer segment for top carriers like FedEx, UPS and DHL. The industry accounts for nearly half of the $80 billion addressable healthcare market, Carere said during the company's 2026 Investor Day last month. At the time, FedEx's year-to-date revenue tied to the pharmaceutical industry was $1.6 billion, up 9% year over year.
Shipments in the sector call for "extreme accuracy and reliability” to help achieve desired patient outcomes, Carere said. She said FedEx has differentiated itself by meeting rigorous global standards and leveraging its Surround platform's ability to reroute shipments as needed.
"The benefit of this solution is building much deeper customer relationships and retention," Carere said during the Investor Day.
FedEx expects sustained growth in per-package revenue as it further implements its push to grab volume in higher-yielding areas of the parcel shipping market, Carere said on Thursday's earnings call. Beyond healthcare, the company is also emphasizing volume from automotive companies, data center operators, aerospace manufacturers and specialized business-to-consumer shippers.
FedEx is working to bolster its services in order to attract prospective customers in those segments. For example, the carrier is looking at ways to expand its weekend delivery capabilities, such as offering coverage for commercial purposes instead of just e-commerce deliveries, Carere said. FedEx also recently launched FedEx Returns+, a digital tracking and returns capability aiming to improve the end customer experience.
"The early market reaction for this U.S. launch has been very positive, and we're excited to expand the offering to Europe this coming April," Carere said.
