FedEx Exec Sees No Peak-Season Capacity Crunch In 2011

he U.S. air cargo sector will not see a repeat of last year's peak-season capacity squeeze in 2011, a senior FedEx Corp. (FDX) executive said Wednesday.

Vice President Marketing Carl Asmus also highlighted the development of crossborder ecommerce as the key emerging growth sector for the U.S. air shipping sector.

A combination of restocking across the manufacturing sector and a stronger-than-expected holiday shopping season in the U.S. at the end of last year caught many shippers unaware.

"I don't think we are going to have a capacity problem this peak," said Asmus at an industry conference hosted by Northwestern University, admitting that FedEx had been "really concerned" about coping with last year's surge in business.

He cited the FedEx delivery schedule for new 777 freighters from Boeing Co. (BA) as a prime reason for his optimism about matching supply and demand this fall.

Asmus said alongside the explosive growth seen in trade between developed countries and emerging markets, international ecommerce would also boost expansion in the air cargo sector.

Shippers have learned the lesson of its role in the domestic U.S. ecommerce market, where Asmus said their focus on only providing transportation had been rewarded with volume but low yields.

With crossborder ecommerce expected to account for more than half of the sector within two years, Asmus said air shippers were focusing on providing a more complete logistical package for clients that would capture higher value.