In an interview Thursday with CNBC Jim Cramer, fedex CEO Raj Subramaniam said his company can do well even if there is a change in the supply chain.
“As supply chain patterns change, we are here, there and everywhere,” he said. “This is the advantage that people sometimes miss, is the fact that we have such an extensive network, which gives us an advantage in these dynamic times“.
President-elect Donald Trump has threatened to significantly raise import tariffs for several countries, especially China, and these moves are likely to disrupt global supply chains. While Subramaniam acknowledged that China currently accounts for approximately 28% to 30% of global manufacturing, he said the good news for FedEx is that its network is global, claiming that the company serves 99% of global trade.
This dynamic makes it easier for FedEx to “adapt and move our capacity” and connect any point in the network to the rest of the world, he continued. Subramaniam also said the company is seeing better-than-expected demand this month. He said he believes consumers are feeling more optimistic and noted that December could be a record month for the Port of Los Angeles.
FedEx reported a mixed quarter on Thursday after closing and Announce It plans to spin off its shipping business into another publicly traded company, FedEx Freight. Shares rose more than 8% in extended trading. Subramaniam said the split could help create long-term value for shareholders of both companies.
“We are sitting on global supply chain insights,” he said. “So we want to not only become a leading transportation network provider, but also a global supply chain technology provider.”
