Maritime Industry Briefing: FedEx Surcharges, Diesel Prices, LNG Shipping Orders

## FedEx Doubles Down on Premium E-Commerce Deliveries According to FreightWaves, FedEx is focusing its e-commerce delivery efforts on longer-haul, heavier, and higher-value parcels, rather than trying to compete with local couriers for small package delivery. The company is implementing new surcharges for e-commerce shipments, signaling that operating as a 'last-mile' provider for low-margin online orders is not a profitable model for FedEx. 'When it comes to e-commerce delivery, FedEx only wants longer-haul, heavy and high-value parcels because operating as a local courier for small packages isn't profitable,' the report states. ## Diesel Prices Continue Upward Trend The benchmark price used for most fuel surcharges has risen for the fifth straight week, according to FreightWaves. This reflects the ongoing increase in diesel costs that has impacted the shipping and logistics industry. 'The benchmark price used for most fuel surcharges rose for the fifth straight week,' the report noted. ## CMA CGM Orders Six Dual-Fuel LNG Ships In shipping news, the Journal of Commerce reports that French container line CMA CGM has ordered six new dual-fuel liquefied natural gas (LNG) vessels from an Indian shipyard. 'CEO Rodolphe Saadé said the deal deepened a strategic partnership between the carrier and India that has existed for almost 40 years, adding the liner would also expand its engagement in container manufacturing and ship recycling,' the article states. ## Capacity Control Hinders Ocean Reliability The Journal of Commerce also reports that container lines' efforts to maintain high vessel utilization by removing functional capacity is actually weakening the overall network and increasing volatility in ocean reliability. 'The success of container lines in keeping vessel utilization high by removing functional capacity weakens the network and ups volatility in ocean reliability,' the report says.