FedEx, through its subsidiary TNT Australia, has signed a new six-year deal with carrier Qantas Freight to add more capacity to meet growing domestic demand in the midst of rapid e-commerce and online shopping.

The agreement, valued at more than AUD350 million, provides FedEx access to the belly space of Qantas and Jetstar domestic services, as well as the freighter network operated by Qantas Freight across Australia.

The agreement with Qantas Freight will support FedEx in maintaining critical domestic business-to- business (B2B) freight volumes across several growing industries including mining, construction, medical and pharmaceuticals. The domestic freight shipments will include machinery parts for mining equipment, urgent medical supplies and materials for manufacturing.

“This agreement will enable FedEx and TNT to continue meeting Australia’s intensifying demand for freight, particularly while passenger aircraft belly space capacity remains constrained due to COVID-19. We are actively counselling and working with small, medium and large businesses in Australasia to support their growing demand – especially in the wake of accelerated e-commerce and online shopping,” said Peter Langley, Vice President, FedEx Express Australasia.

“Our long-term domestic agreement with Qantas Freight will provide these businesses with reliable access to the best connectivity within Australia and to new international markets,” he added.

Qantas Freight Executive Manager Catriona Larritt said the new deal comes at a time when the demand for freight services is higher than ever.

“Qantas has had a long-standing relationship with FedEx and TNT in Australia. As FedEx and TNT come together in Australia, our extended agreement will help meet continued demand. Together, we will work to ensure we meet the needs of customers now and into the future,” Larritt added.

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