Creative thinking starts with ELAINE

How would inflation affect commercial and retail transportation?


Using Artificial Creative Thinking to scope the effect of inflation on a typical transport earnings discussion like Federal Express, growth could be restrained by repricing and yield management that applies to both domestic and international package delivery.

On the supply side, the cost of container movement remain high and unpredictable. This can be a reason for the deployment of yield management and repricing; resulting concerns for investors. As much as the central bank may not want to face inflation directly, transportation growth along with inflation growth will eventually put a cap on consumption in the not so distant future. Peaking growth will be followed by slower demand; a signal for recession to return.

ELAINE analysis of Federal Express latest earnings call (2021/06/24). Click to view details