FedEx Russian Fiasco Opens Doors for Competitors
FedEx is struggling to keep its Russian operations afloat after moving airports and replacing its longtime local agent in December — just days before a sweeping new customs regime came into force. In a snarl-up that has yet to be fully unwound, thousands of FedEx packages became marooned at Domodedovo Airport, calling into question the company’s membership in the “Big Four” club of express delivery providers in Russia, while simultaneously opening the door to upstart domestic companies. Express delivery companies are notoriously tight-lipped about the financial side of their operations, and there is little independent research about their activities that can be considered authoritative, making it difficult to gauge turnover and trends. But by most accounts, the industry has grown between 25 percent and 40 percent per year over the last three years, and just four Western companies — Dutch TNT, Brussels-based DHL and American UPS and FedEx — account for most of the action.
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