Dive Brief:

• FedEx is realigning its specialty logistics and e-commerce solutions into a new unit to be known as FedEx Trade Networks, Inc. (FTN) beginning March 1, 2018, a company newsletter announced. Richard Smith, named CEO of FedEx Trade Networks, will spearhead the new unit.
• The reorganization will include a new company called FedEx Forward Depots, which will incorporate Critical Inventory and Service Parts Logistics, 3-D Printing and Repair Center, and the FedEx Packaging Lab. 
• In addition, the reorganization realigns FedEx Custom Critical, FedEx Cross Border, FedEx Supply Chain, and FedEx Trade Networks Transport & Brokerage.

Dive Insight:

With its new collection of targeted services, FedEx may be taking aim at international delivery dominance.

Though both UPS and FedEx intended to retake deliveries previously routed to the U.S. Postal Service for last-mile delivery, FedEx has concentrated more on the trend toward heavy freight purchases, the delivery of oversized purchases such as mattresses or furniture. In addition, the logistics specialist has been heavily involved in international e-commerce delivery, contributing sales of which are projected to grow by at least 20% by 2022. 

Previously, FedEx seemed to be positioning itself as the small-business carrier of choice. This was reflected in its decision to forego peak season surcharges similar to those levied by UPS, in order to better serve its "millions of loyal small business customers and consumers shipping holiday gifts" during the season.

Now, however, the company appears to be branching out into capturing the lion's share of international e-commerce. Concentrating on ease of international delivery, the FTN unit offers easily accessed information on tariffs and customs clearances. While all carriers contend with last-mile delivery challenges, FedEx appears to steering toward more international waters and away from UPS and USPS specialties.