In May this year, the United States$FedEx Corp (FDX.US) $For many times, the company"accurate error"Huawei package, in China"shot to fame". But now, the sour life is not easy, and it is going through troubled times.

On the evening of September 17th, FedEx Corp released his report on the first quarter of 2020. It was disclosed that revenue in the first quarter was $17.05 billion, down 0.02% from a year earlier. Under GAPP, net income in the first quarter was $745 million, down 10.78% from the same period last year.

FedEx Corp President and CEO Frederick Smith (Frederick Smith) said in a statement, "in view of increased trade tensions and policy uncertainty and the weakening global macro environment, our performance continues to be negatively affected. "

In addition, due to changes in the external situation, FedEx Corp also lowered his profit index for fiscal year 2020. The company's downgrade of guidelines also reflects the increase in ground costs and the impact of the loss of major customers in August. The company expects full-year adjusted earnings per share of $11 to $13, compared with market expectations of $14.73.

After the announcement of the results, FedEx Corp fell more than 11% in after-hours trading, equivalent to an evaporation of more than 30 billion yuan. And the company's history peaked in January 2018, when the share price rose to $270.91 and then fell, hitting a new low of $147.82 in August. The market capitalization has lost about $32.13 billion, or more than 230 billion yuan.

We can see that FedEx Corp is in a very difficult situation at present."embarrassed"And will be faced with"internal and external troubles"The situation.

"external trouble"-- Chinese Market

In the 70 years from 1949 to 2018, China's total postal service increased from 160 million yuan to 1.2345 trillion yuan, an increase of more than 7700 times. The volume of express delivery has also increased from 1.53 million in the 1980s to 50.7 billion in 2018, with an average annual growth rate of 41.5% over the past 30 years. Among them, China completed 603.8 billion yuan in revenue from express delivery in 2018, accounting for 76.4 percent of the revenue from postal services.

It is reported that China accounts for more than 50 per cent of the global market share of express parcels, and Chinese express companies account for about 70 per cent of China's international logistics market, surpassing international giants such as FedEx Corp.

According to the agency, the number of express deliveries in China will exceed 60 billion in 2019, which will be the sum of Europe, the United States and Japan. China's express industry has grown from scratch. After 70 years of unremitting efforts, China has grown into the fastest growing and most dynamic new delivery market in the world.

However, after 35 years of operating in China, FedEx Corp has died frequently this year.

In May and June, FedEx Corp of the United States made a series of "operational mistakes" by transporting two express shipments from Japan to Huawei's address in China to the United States without authorization. In addition, FedEx Corp also returned Huawei mobile phones sent to the United States from a British science and technology expert. These two incidents have aroused great concern from public opinion and government departments.

However, at first, FedEx Corp announced that he was "pure mistake", but eventually admitted that he was instructed by the US Department of Commerce and took the Department of Commerce to court on June 24. the department's Export Administration regulations are accused of violating the Fifth Amendment to the US Constitution.

This is not over. FedEx Corp continues to die.

On August 18, People's Daily reported that a sporting goods company in Fujian Province had received an express package containing guns from an American customer shipped by FedEx Corp of the United States. At present, Fuzhou police have temporarily detained guns and launched a case investigation.

In early September, Xinhua reported that FedEx Corp (China) Co., Ltd. was suspected of illegally receiving and sending controlled knives to Hong Kong, and the items involved had been temporarily detained by Chinese authorities, and an investigation was under way.

FedEx Corp died again and again, and netizens said that he had basically locked in one China."unreliable list"One of the seats.

At present, FedEx Corp's income in the Chinese market is between 18 billion and 20 billion. If it is included in the list, it means that FedEx Corp will lose market income in China and the imaginative space for performance growth.

"Internal worries"-- Amazon.Com Inc

In August this year, FedEx Corp said that at the end of August, with the US e-commerce giant$Amazon.Com Inc (AMZN.US) $When the contract expires, the contract will not be renewed, and the cooperation between the two sides in land transportation and delivery in the United States will be terminated. In June this year, the two sides publicly stated that they would end US air delivery cooperation.

But in fact, as early as July, Amazon.Com Inc had stopped most of his business with FedEx Corp. According to parcel consultancy SJ Consulting, 45 per cent of Amazon.Com Inc's July orders were delivered by the company's own drivers, 28 per cent by the US Post Office and 21 per cent by United Parcel Service Inc Transportation Services (UPS). According to SJ consulting, FedEx Corp did not register any Amazon.Com Inc parcels for delivery in July.

FedEx Corp has not only lost Amazon.Com Inc's super "big client", but will also face potential challenges and threats from Amazon.Com Inc in the future.

Amazon.Com Inc currently owns about 50 aircraft (70 by 2020), tens of thousands of cars, deploys third-party drivers and has pledged $1 million to help employees set up their own independent delivery business under Prime.

Of course, Amazon.Com Inc, the US stock, is just getting started, but it has said it intends to challenge the dominance of FedEx Corp and United Parcel Service Inc (United Parcel Service Inc) with discounts-Amazon.Com Inc is reportedly willing to give up fees charged by competitors to attract customers. If the bidding war begins, it could threaten the performance of large airlines, as FedEx Corp believes that fuel surcharges "have a positive impact on the revenue of all our transport sectors in 2019".

The end.

Except for the above mentioned"internal and external troubles"FedEx Corp giant will also face international competition from Chinese express delivery giants.

Among them, the biggest action is the rookie network under BABA. On May 31, 2018, Jack Ma announced that he would spend 100 billion yuan to build a national intelligent logistics network to connect the world."24 hours at home, 72 hours overseas."The goal.

On June 6 of the same year, BABA, together with Unicom, invested 12 billion yuan to establish an eHub (digital trade hub) project at the Hong Kong International Airport. On June 13th, BABA will set up a logistics transit station in Dubai covering Europe, Asia and Africa.

In addition to Cainiao network, there are post, Shun Feng, Yuantong and other mainstream express companies have increased their international business. Among them, China Postal Airlines has a fleet of nearly 70 all-cargo aircraft dominated by B757 and B737, with routes covering Seoul, Osaka, Chicago, Novosibirsk, Incheon and other international regions. In addition, Shunfeng also has 45 all-cargo planes and is under construction of the Ezhou Shunfeng Civil Airport near Duwan Village, Yanji Town, Echeng District, Ezhou City, Hubei Province.

Although the three Chinese logistics companies currently account for 25% of the international parts business, which is lower than the federal current 31% and the German DHL of 27%, they are a strong potential challenger.

FedEx Corp's current predicament can be described as besieged on all sides. First of all, offending Huawei and offending China, it is easy to be included in the "unreliable" list and completely lose the Chinese market; second, it loses its super customer, Amazon.Com Inc, and faces its potential competition; finally, it will also face the direct battle of Chinese logistics giants going out to sea.

FedEx Corp, a veteran logistics enterprise that has been established for more than 50 years, is currently experiencing unprecedented pressure and difficulties. This awkward situation is not easy to reverse.