Leading freight forwarding company, FedEx Corp. (FDX) announced the expansion of its SenseAware service in Europe. The service provides real time visibility into sensitive and high-value shipments.
The service will be available in 14 additional European countries namely, including Belgium, Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Poland, Spain, Sweden and Switzerland. Further, the company has also expanded its SenseAware service availability in Canada, where it already enjoys an existing market. We believe that the expansion of SenseAware will enhance FedEx’s global reach and be accretive to drive revenues generation over the long term.
Apart from the new expansion, FedEx also aims to spread its services across the U.S., Canada and Mexico by capitalizing on business opportunities in NAFTA (North American Free Trade agreement) markets.
Through its Trade Networks division, FedEx remains successful in establishing relationships and extending capabilities to 19 countries across Latin America. Further, in Oct 2013, the company testified before the U.S. Senate on the Transatlantic Trade and Investment Partnership (:TTIP).
The company expects TTIP to help integrate the world’s largest trade and investment network, between the U.S. and the EU, more seamlessly with compatible regulatory approaches. These initiatives enable the company to strengthen its international business and provide opportunities to offset a soft demand trend in its domestic market.
FedEx, which operates with other carriers like United Parcel Service, Inc. (UPS), Radiant Logistics, Inc. (RLGT) and Expeditors International of Washington Inc. (EXPD) foresees modest growth in the global economy, driven by gradual improvements in Europe and China. This momentum is expected to support its growth plans in expanding organically as well as through various acquisitions.
FedEx currently has a Zacks Rank #3 (Hold).