From Yahoo Finance: 2025-05-13 10:36:00

Amazon and FedEx have reunited after six years, with FedEx providing limited residential package delivery for the retail giant. The multiyear agreement includes the delivery of select large packages for Amazon. FedEx’s Chief Commercial Officer expects financial gains due to the deal leveraging the company’s capabilities across all U.S. ZIP codes.

Amazon strongly denies that the deal with FedEx aims to replace services provided by UPS. FedEx reportedly offered better pricing than UPS, leading to the new agreement. FedEx will also support Amazon’s Extra Large delivery network, but Amazon stated that it is premature to reference AMXL at this point.

In 2019, FedEx ended its domestic ground-delivery contract with Amazon due to challenging service requirements and low yields. The split led Amazon to divert business from FedEx’s SmartPost service. The new agreement is expected to generate above-average revenue per shipment for FedEx and improve revenue quality within the network.

Barclays’ transportation analyst believes the new deal with Amazon will support higher yields for FedEx’s core domestic package network operation. The analyst suggests that Amazon’s motivation to add another delivery partner may be due to higher pricing from UPS. FedEx’s cost reductions and efficiency campaign enable competitive pricing.

Consultancy LDK Global Logistics’ CEO suggests that FedEx’s excess parcel network capacity led to the agreement with Amazon. He believes FedEx’s move may be short-term and opportunistic, as the company aims to fill excess capacity. Amazon seeks to replace lost UPS capacity, likely due to UPS raising rates for large, bulky freight. 1. The stock market surged today, with the S&P 500 reaching a record high. Tech stocks led the way, as investors responded positively to strong earnings reports from major companies like Apple and Google. Analysts are optimistic about the market’s continued growth.

2. In international news, tensions are rising between Russia and Ukraine as Russian troops continue to mass along the border. The U.S. and other Western countries have expressed concern over the situation, calling for diplomatic solutions to prevent further escalation.

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4. The latest COVID-19 data shows a decrease in cases and hospitalizations in many parts of the world. Vaccination efforts continue to ramp up, with more and more people receiving their shots. Health officials are cautiously optimistic about the progress being made in the fight against the virus.

Read more: Amazon taps FedEx for big-and-bulky residential deliveries