Global Economic
Impact Report
Measuring the FedEx Effect | October 2023
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Economic Impact Report | FedEx
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On April 17, 1973, the first FedEx planes left
Memphis and delivered 186 packages to 25
cities across the United States (U.S.). In the 50
years since that day, FedEx has helped shape
the global economy by connecting communities
and transforming the way businesses exchange
goods, services, and ideas.
Today, FedEx has the most extensive
transportation network in the world, providing
service to more than 220 countries and
territories, employing more than 500,000 people,
and delivering millions of packages a day. That
growth, in turn, has streamlined international
trade and supported economic development in
the regions that FedEx serves. FedEx shipping
and logistics services are an integral part of
the global supply chain and help businesses of
all sizes reach more customers. The company’s
revenues, capital investments, and spending with
suppliers boost local gross domestic product
(GDP) and support local job creation. We call
these contributions the
FedEx Effect.
This report quantifies the FedEx Effect by
demonstrating the company’s impact on
the overall global and U.S. economies, and
contributions to major financial and commercial
centers around the world. FedEx transportation
hubs and offices help drive economic activity in
cities across the globe and serve as critical transit
points to help FedEx connect the vast majority
of the world’s GDP. As a result, the startup that
shipped just 186 packages on that April night 50
years ago now delivers more than $80 billion in
direct economic impact to the global economy.
Beyond this direct impact, FedEx indirectly
creates an estimated $35 billion in additional net
economic output
1
in the global economy.
As the FedEx footprint has expanded across the
world, so has our network of suppliers for goods
and services. These businesses provide their own
economic contributions in the form of wages,
taxes, capital investments, and other activities.
In fiscal year (FY) 2023,
2
FedEx contracted with
roughly 100,000 direct suppliers — 90% of which
are the small businesses that fuel innovation,
create jobs, and lift their local communities.
Along with these business-related impacts,
FedEx makes significant philanthropic
contributions to the communities where
our team members and customers live. The
company’s growth over the past five decades
has strengthened our ability to make a
difference, culminating in the FedEx Cares 50 by
50 initiative that we launched in 2019. The goal
was to positively impact 50 million people by
our company’s 50
th
year, which we achieved
and exceeded early in 2023.
The company’s milestone birthday is not just an
occasion to reflect on the past, however. FedEx
continues to look ahead for opportunities to
transform our business and improve the services
that help our global customer base succeed
and grow. We are focused on becoming more
efficient in the way we operate, which will not
only deliver benefits to our customers, but to our
environment as well. For example, we’re working
toward our goal of achieving carbon neutral
operations by 2040 through strategies such as
fleet electrification and the use of renewable
energy by our facilities.
FedEx launched with the vision that a connected
world is a better world. The positive economic
impact detailed in this report demonstrates the
concrete ways that greater connection opens
up new opportunities to improve people’s lives.
Looking ahead, we believe that creating an even
more connected and sustainable future will
strengthen the FedEx Effect for team members,
customers, suppliers, and communities around
the world.
Raj Subramaniam
President & CEO
FedEx Corporation
50 Years of the FedEx Effect
1
Net economic output is the difference between the value of total or gross output and the cost of inputs such as energy, raw materials, and services. Also known as value added.
2
Fiscal year (FY) 2023 is defined as June 1, 2022-May 31, 2023.
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Economic Impact Report | FedEx
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The evolution of FedEx
Global expansion, global impact:
A 50-year journey
Global economic impact
Spotlight: The United States
A closer look at select markets in the U.S.
Spotlight: The Americas
A closer look at select markets in
the Americas
Regional Spotlight: Europe
A closer look at select markets in Europe
Regional Spotlight: AMEA
A closer look at select markets in AMEA
Supporting the success of small
businesses around the world
FedEx Cares
Delivering a more
sustainable future
4
5
10
6
13
18
19
23
22
25
26
30
31
35
Contents
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Economic Impact Report | FedEx
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FY 2023 was a time of transition for both the economy and company. Inflation, interest rates, and
a slowdown of global trade led to a general weakening of the industrial economy. Additionally,
consumer spending shifted to services versus goods, and there was an e-commerce reset coming
out of the COVID-19 pandemic. In response, FedEx quickly implemented actions to align its cost
base with underlying demand and help build the most flexible, efficient, and intelligent network.
Evolution and reinvention have been a theme throughout the history
of FedEx. Since launching operations in 1973, FedEx has passed through
three distinct lifecycles that represent an expansion of the company’s
services and geographic reach.
During its first phase in the 1970s and early 1980s, FedEx overnight shipping
revolutionized the way U.S. customers connected. Later in the 1980s and through
the 1990s, FedEx began an international expansion that helped customers reach new
markets around the world. By the 2000s, FedEx entered its third phase when further
international acquisitions and the integration of freight, logistics, and trade services
helped transform global supply chains. This also enabled the explosive e-commerce
growth that has drastically changed consumer shopping behavior and how
businesses operate.
As a result of this expansion, FedEx connects more than 220 countries and
territories with a range of transportation, logistics, and business services. FedEx
shipping options, customs brokerage services, supply chain management tools, and
other services support businesses of all sizes that generate economic growth across
the world — creating a positive impact on the local communities where FedEx and
its customers operate, as well as the economies of entire countries and geographic
regions.
This report quantifies the company’s economic impact using analysis from Dun &
Bradstreet on FedEx contributions to the global economy and to its four main
operational regions: The United States; the Americas (Canada and Latin America and
the Caribbean); Europe; and AMEA (Asia Pacific, Middle East, and Africa). The sections
that follow detail the impact that FedEx has on regional net economic output through
the business services it provides, as well as the company’s capital investments,
employment, and spending with local suppliers. Each regional focus also includes a
closer look at select markets, highlighting the positive role that FedEx plays in areas
where the company has a large presence.
Other sections of the report focus on FedEx efforts to promote international trade,
support small businesses, give back to local communities through charitable giving
and volunteer efforts, and embrace sustainable business practices. These activities
and contributions — along with the direct and indirect impact that FedEx has on local,
country, and regional economies — capture the holistic scope of the FedEx Effect.
The evolution of FedEx
Domestic
Growth
$90 Billion USD
$40 Billion USD
$10 Billion USD
$1 Billion USD
Flying Tigers
Acquisition
Caliber
Acquisition
Kinko’s
Acquisition
TNT
Acquisition
International
Growth
Digital
Growth
MILESTONES
REVENUE
Supply Chain
& E-commerce
Growth
FY 1989
FY 1998
FY 2004
FY 2016
FY 2023
(FY 2022)
(FY 2012)
(FY 1996)
(FY 1983)
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Global expansion, global impact: A 50-year journey
The FedEx Effect has spread around the world as the company has
progressed through its phases of growth and innovation. Here are key
milestones in the company’s history.
1973
FedEx launches air delivery service from
Memphis with a fleet of 14 aircraft.
1977
The acquisition of seven Boeing 727s increases
fleet cargo capacity.
1981
Service to Canada begins.
1984
FedEx begins intercontinental service to
Europe and Asia with the acquisition of
Gelco Express International.
1988
Cargo service to Japan begins with a regularly
scheduled trans-Pacific flight.
1989
The acquisition of the Flying Tiger Line, including
routes to 21 countries in Europe, Asia, and South
America, makes FedEx the world’s largest full-service,
all-cargo airline.
1996
The Civil Aviation Administration of China
(CAAC) grants FedEx approval to operate
a U.S./China all-cargo route.
1998
The acquisition of Caliber System Inc., including small-
package ground carrier Roadway Package System,
Inc. (RPS), leads to the creation of FedEx Ground and
positions FedEx to address emerging e-commerce
opportunities.
1999
FedEx opens its express hub at Roissy-Charles De
Gaulle airport — the largest FedEx hub outside the
U.S. — and launches the EuroOne network.
2005
FedEx launches two around-the-world
flights (one eastbound, one westbound)
to improve service to major markets.
2007
Two acquisitions improve FedEx service in
Europe: ANC in the U.K. and Flying-Cargo Hungary.
2009
Operations begin at the new Asia-Pacific
hub at Baiyun International Airport in
Guangzhou, China.
2012
FedEx opens the South Pacific Regional
Hub in Singapore.
2014
FedEx begins operations in North Pacific
Hub in Osaka, Japan.
2016
FedEx acquires TNT Express, one of the world’s largest
express delivery companies, which expands service in
Europe, the Middle East, Africa, Asia-Pacific, and the
Americas.
2019
FedEx acquires the International Express business of
Flying Cargo Group in Israel.
2023
FedEx celebrates 50 years in operation.
2024
FedEx will consolidate its operating companies
into one organization, creating efficiencies that will
enhance the company’s ability to meet the evolving
needs of customers. This move will ultimately build
a stronger, more profitable enterprise and further
enable the company to continue making significant
contributions to economies around the world.
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FedEx plays a key role in facilitating the flow of
goods, services, and information that drive the
global economy. While FedEx transportation,
e-commerce, and business services connect a vast
majority of the world’s gross domestic product
(GDP), the company also contributes to economic
growth through its investments in facilities,
employee wages, and purchases with suppliers
across the globe. Despite a challenging operating
environment in FY 2023, FedEx continued making
substantial contributions to the worldwide economy.
This section examines the direct and indirect impact
of the company’s business activities
3
around the
world in FY 2023. Dun & Bradstreet analyzed a
range of contributions that FedEx makes to the
global economy, including revenues, wages, and
capital expenditures, that directly affect GDP.
Beyond these direct contributions, Dun & Bradstreet
has also examined the indirect but substantial
impact that FedEx operations have on local, country,
and regional economies through its services, as well
as its transactions with other businesses — many
of which are small and locally owned. This activity
generates additional jobs and revenues that multiply
the impact that FedEx has across the world.
To provide a worldwide impact estimate, Dun &
Bradstreet analyzed major FedEx markets, as well as
neighboring markets that don’t house large FedEx
operations but still experience a spillover effect from
business activity generated by the extensive reach
of the FedEx network. Details on the company’s
direct and indirect impact on specific global regions,
including closer looks at select markets in each
region, can be found in later sections of this report.
Direct impact
Because of the size of its network and the range of
services it provides, FedEx is a major contributor
to worldwide economic output. The value of the
company’s contributions is especially notable in
sectors related to the company’s core services,
such as transportation.
In FY 2023, direct contributions from FedEx
accounted for approximately 1%
4
of overall
net economic output in the $8.8 trillion dollar
Transportation, Storage, and Communications
sector as defined by the United Nations Conference
on Trade and Development (UNCTAD).
Despite several economic pressures during FY 2023,
total worldwide net economic output grew to an
estimated $103 trillion for the fiscal year, up from
$92 trillion the previous year. Direct contributions
from FedEx represented 0.09%
5
of that total — a
considerable amount for a single company.
These global impact figures reflect the scale of the
network and services that FedEx has developed
over the past five decades, and which the company
continues to improve over time to meet
customers’ needs.
3
The direct impacts of FedEx Corporation on the overall value-added of a country or region for this analysis are estimated considering the annual revenue that is generated by FedEx in FY 2023. Value-added is
defined as the net contribution of an industry or sector to overall output or Gross Domestic Product (GDP). Value-added is a macroeconomic measure which is commonly used for economic impact assessment
calculations. Besides the direct impact of FedEx operations on national and sectoral output, the corporation also has indirect impact on industries through sectoral dependencies and backward and forward linkages.
The Input-Output (I-O) Accounting annual table series published by the Bureau of Economic Analysis (BEA) for the United States and the Organization for Co-operation and Economic Development (OECD) for the
global economy is used for computing this impact.
4-5
Global direct and indirect impact figures are estimated to account for spillover effects of the FedEx network in regions where the company does not have operations.
500,000+
employees
5,000+
facilities
700+
aircraft
210,000+
motorized
vehicles
~14,500,000
shipments per
business day
(average daily volume
)
FEDEX BY THE
NUMBERS
Global economic impact
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For example, in FY 2023:
•
FedEx opened highly efficient new facilities across a
range of locations, including Ireland, Poland, Australia,
and South Korea.
•
The company enhanced many existing facilities by
investing in advanced sorting equipment, adding
warehouse capacity, and expanding airport ramp and road
truck operations.
•
FedEx implemented operational efficiencies in some
markets. For example, in Alaska, FedEx Ground began
subcontracting with FedEx Express for pickup and
delivery of Ground packages. This adjustment — which
was effective and seamless to customers — has helped
minimize duplicative pickup and delivery efforts, balance
volume in the network, and optimize facility use.
While FedEx has continued to improve its network
and services to create growth opportunities
for customers, the company has also remained
committed to its workforce — employing more
than 500,000 people around the
world in a range of occupations.
For example, FedEx relies on thousands of drivers, pilots, and
maintenance personnel to operate its expansive vehicle fleet.
Package handlers, forklift drivers, and operations managers
keep shipments moving in FedEx hubs, sorting facilities,
and warehouses. The company’s customs agents, trade
consultants, and logistics experts help customers manage
supply chains and navigate international trade issues, while
customer service personnel and retail staff help customers
with other shipping, printing, and business needs. FedEx data
scientists, software engineers, and other IT experts develop
innovations that improve the company’s operations. And
across the enterprise, FedEx employs experienced business
professionals in roles such as sales, marketing, finance, and
human resources.
Indirect impact
Beyond this direct impact, FedEx contributions to global
net economic output create additional economic activity
across its business network. For example, transactions
between FedEx and local businesses help support revenues
and employment at those companies, while FedEx services
contribute to net economic output in other sectors of the
economy such as manufacturing, transportation, construction,
and retail. These contributions are considered the indirect
impact of the global FedEx network.
FedEx indirectly contributed an estimated $35.3 billion to
global net economic output in FY 2023. Across different
sectors of the global economy, FedEx made the largest
indirect contributions to the Transportation, Storage, and
Warehousing sector
6
($18.4 billion) and the Manufacturing
sector
7
($7.4 billion).
Impacts through the supply chain
To operate such a geographically diversified business, FedEx
relies on a network of roughly 100,000 suppliers across its
global footprint. FedEx purchases of goods and services from
these suppliers generate additional economic activity beyond
the direct and indirect impact of the company’s operations.
The spend with FedEx suppliers stimulates additional
spending in regional, country, and local economies, as FedEx
direct vendors in turn make purchases from thousands of
other companies down the supply chain, including tier-two
suppliers (companies that provide materials, components, or
services to direct vendors) and tier-three suppliers (companies
that provide materials and services to tier-two suppliers).
6-7
As defined by the United Nations Conference on Trade and Development (UNCTAD).
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Economic Impact Report | FedEx
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Dun & Bradstreet analyzed FedEx spending with
roughly 73,000 unique suppliers over calendar year
(CY)
8
2022.
9
Collectively, these suppliers employed
nearly 22 million people. FedEx spent approximately
$67 billion with these global suppliers during that time,
providing a source of revenue that enables supplier
companies to invest in their own operations and
hire employees.
For example, FedEx spending supported an estimated
1.1 million jobs across its suppliers in CY 2022 — nearly a
10% increase in total supplier jobs supported by FedEx
spending in CY 2021. All four regions covered in this
report recorded an increase in the number of supplier
jobs supported by FedEx spending in CY 2022, with the
European supply chain experiencing the highest level of
supplier job growth at 43%.
FedEx supplier spending makes a significant
contribution to the small- and medium-sized business
(SAM) market. FedEx spent nearly $44 billion with SAM
suppliers
13
around the world in CY 2022, and those
purchases supported nearly 530,000 small business
jobs. The number of small business jobs supported by
FedEx supply chain spending increased the most in
AMEA and Europe, with both regions recording a
19% increase.
FedEx is also committed to working directly with diverse
businesses that are competitive in quality, service, and
cost. In FY 2022, the company spent $5 billion with
minority- and women-owned businesses in the U.S.
alone.
FedEx also recognizes that diverse businesses can face
a complex set of challenges. To help these suppliers
overcome barriers to their success, FedEx provides
diverse businesses across the globe access to programs
and networks that meet their specific needs, such as
training, mentoring, networking, and access to capital.
SUPPLY CHAIN SPENDING BY REGION
AMEA
50%
AMEA
$3.7 billion
Americas
12
66%
Americas
10
56.4 billion
Europe
64%
Europe
$7.3 billion
United States
73%
United States
$50.0 billion
PERCENTAGE OF SMALL BUSINESS SUPPLY
CHAIN SPENDING BY REGION
11
8
Calendar year (CY) is defined as January 1-December 31.
9
All supply chain data is for calendar year 2022.
10, 12
Includes Canada, Latin America, Caribbean, and the U.S.
11
Values are estimated using Dun & Bradstreet’s analytical high-confidence sample.
13
Defined as companies with fewer than 100 employees.
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for larger companies and smaller businesses
that require less-than-container load freight
shipments. FedEx Logistics also offers supply
chain management services that include access
to warehousing and distribution facilities, as
well as online tracking and centralized purchase
order management tools.
Simplifying the complex world of customs,
duties, and taxes is another way FedEx has
helped smaller businesses capitalize on the
growth potential from international sales. FedEx
provides customs brokerage services, trade
consulting, and compliance training for small
businesses, as well as online tools like the Global
Trade Manager and International Shipping Assist
that help prepare documents, estimate duties
and taxes, and streamline the customs process.
FedEx is also committed to helping smaller
businesses develop international business
strategies by providing guidance and education.
Resources on the company’s online small
business hubs include research reports on
trends in cross-border commerce and guides
for managing global supply chains, navigating
customs regulations, and becoming an exporter.
FedEx has also offered online classes geared
toward helping small- and medium-enterprises
participate in cross-border e-commerce.
Since its inception,
FedEx has seen how
global trade lifts the
fortunes of people and
businesses, while driving
economic growth.
Through continued support of pro-trade policies
such as de minimis, expanded shipping, logistics,
supply chain services, and education programs,
FedEx will continue pursuing its mission to
connect people and possibilities around
the world.
Impacts through the extended
supply chain
The impact of FedEx supply chain
spending extends beyond the company’s
direct suppliers. To fulfill demand for
goods and services, these vendors often
make purchases from a network of their
own suppliers, supporting additional
revenue generation and job creation
further down the supply chain.
This additional economic impact occurs
when FedEx makes major purchases and
from smaller, ongoing spending needed
to support operations. For example, in
FY 2023, FedEx regularly purchased
thermal labels from Veritiv, a third-party
distributor of packaging supplies. Those
purchases support jobs and revenue at
Veritiv (a direct FedEx supplier), but also
at RR Donnelley (a tier-two supplier that
manufactures the labels) and Ricoh (a tier-
three supplier that provides RR Donnelley
with the thermal label base stock).
Encouraging trade that connects
the world
Trade is the lifeblood of the global
economy. During its 50-year history,
FedEx has focused on expanding trade
opportunities by supporting initiatives that
make it easier for businesses of all sizes
to connect with customers and suppliers
around the world.
FedEx is a strong supporter of trade
policies that offer greater market access
and efficiency for its customers. This
includes advocating in favor of provisions
like de minimis allowances, which enable
individuals and businesses of all sizes
to import low-value goods without
duties and taxes, as well as encouraging
policymakers to break down non-tariff
barriers to trade.
This commitment began back in the
company’s earliest days when FedEx-led
advocacy efforts helped encourage the
U.S. Congress to deregulate domestic
air cargo transportation. The regulatory
change allowed FedEx to begin flying
larger jets that offered more capacity
for customer shipments. In the early
1990s, FedEx also worked closely with
governments around the world to
establish Open Skies agreements, which
expanded access to international routes.
Today, the U.S. has more than 100 Open
Skies agreements with other countries,
breaking down the barriers to
international commerce.
While working to support policies that
expand international trade, FedEx has
continually added services that help
businesses of all sizes participate in the
global economy. The creation of FedEx
Logistics in the 2000s added new options
to assist in importing and exporting,
including ocean and air freight services
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Since FedEx began operations at Memphis
International Airport in 1973, the company has
expanded its network and services to reach
every corner of the U.S. Over the past 50 years,
FedEx Express added a second major U.S. hub
in Indianapolis, Indiana, established international
shipping gateways in Anchorage, Alaska and Miami,
Florida, and built regional hubs in Fort Worth,
Texas; Newark, New Jersey; Oakland, California; and
Greensboro, North Carolina.
With approximately 370,000 employees
operating out of roughly 4,800 U.S.
facilities, as well as more than 7,000
independent service providers as of the
end of FY 2023, FedEx has created a
network that delivers critical goods and
services to every U.S. ZIP code, quickly
and reliably.
With the launch of FedEx Ground services in 1998,
the company began offering home delivery services
that now reach 100% of U.S. residences utilizing a
network of service providers. The incorporation of
FedEx Freight and FedEx Logistics offers more ways
to help U.S. businesses connect with customers,
while FedEx Office provides printing and business
services to support the vital small- and medium-size
business market. Also, FedEx Dataworks provides
smart e-commerce solutions and supply chain
digitization tools to help customers increase their
competitiveness. The business activity supported
by these networks and services — combined
with the company’s revenues, wages, and capital
expenditures — makes significant contributions to
local economies around the country, and to the U.S.
economy as a whole.
Additionally, FedEx has a long history of working
with federal, state, and local governments to provide
services that help with their day-to-day operations,
as well as during crises. For example, the company
engaged with the U.S. federal government to
transport baby formula into the U.S. during the
2022 shortage as part of Operation Fly Formula.
During these types of initiatives, FedEx utilizes
its integrated air and ground network to
effectively transport shipments where
and when they are needed most to help
keep critical supply chains moving.
Spotlight: The United States
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Employment
With operations and employees in every
state, FedEx is one of the largest employers in the
country. FedEx is committed to supporting these
employees with an inclusive, equitable, and growth-
focused workplace. In FY 2023, 61% of FedEx
employees in the U.S. identified as minorities. Within
U.S. management, employees that identified as
minorities made up 40% of positions. FedEx is also
dedicated to helping all team members develop
their careers through learning and development
opportunities, including Core New Employee
Orientation that’s tailored to fit team member
responsibilities in their local workplace and the FedEx
Learning Center that provides more than 25,000 online
courses to employees after orientation.
To support team members pursuing higher education,
FedEx offers tuition assistance and the Learning
inspired by FedEx (LiFE) program — a partnership
between multiple FedEx operating companies and
the University of Memphis. The LiFE program offers
tuition-free, fully-online degree options for more than
30 associate’s and bachelor’s programs of study. All
FedEx Express employees at hub and airport locations
in the U.S., as well as all U.S.-based FedEx Logistics and
FedEx Freight employees and all Memphis-based FedEx
Supply Chain employees, are eligible.
FedEx also provides competitive benefits to support
employee health and quality of life, including healthcare,
wellness, paid sick leave, other flexible paid time off,
short- and long-term disability, and other benefits.
Eligible full- and part-time employees may elect
these competitive health benefits offered by FedEx
for themselves and their eligible dependents. As of
May 2023, FedEx covered about 70% of total eligible
healthcare costs at the plan level for approximately
212,000 participating employees.
Direct impact
As a major provider of shipping and logistics
services in the U.S., FedEx has a substantial direct
impact on the U.S. Transportation and Warehousing
sector.
14
FedEx contributed an estimated 8.2% of net
economic output to this sector in FY 2023.
For the U.S. economy as a whole, FedEx direct
contributions made up 0.3% of total net economic
output, a considerable impact for any single company
within the $26 trillion (estimated) U.S. economy in FY
2023. To put that figure into context, FedEx makes a
larger direct impact than 99.9% of the U.S. businesses
in the Dun & Bradstreet Data Cloud.
15
14
As defined by the U.S. Bureau of Economic Analysis.
15
The Dun & Bradstreet Data Cloud houses more than 520M+ company records updated 20 million times per day. With over 30,000 vetted global data sources, D&B’s capacity and
volume of business data provides its customers with best-in-class coverage, recency, and accurate analytics. Sources are continually monitored for changes and the Data Cloud is
updated accordingly. D&B collects and generates unique, proprietary “signals data” which is not resold and cannot be duplicated or found elsewhere in the market.
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Indirect impact
Beyond its direct impact,
FedEx indirectly contributed
$8.7 billion to net output
across the U.S. economy in FY
2023.
The company made its largest impact in the
Transportation and Warehousing sectors,
16
where
FedEx activities indirectly added nearly $2.6 billion
to net economic output. However, the scale of the
FedEx network and range of the company’s services
indirectly contributed to net output in most major
sectors of the U.S. economy.
Measuring market-level impact
In addition to this impact on the overall U.S. economy,
FedEx plays a notable role in the economic health
of communities where the company has a large
presence. Locations that host FedEx operating
company headquarters, regional sorting facilities,
or major road or air hubs receive a range of
direct economic contributions, including capital
improvement projects, a concentration of local jobs,
and substantial spending with local suppliers. This
impact also extends beyond the local municipality
to generate economic activity across counties and
entire states.
To explore these contributions, Dun & Bradstreet
analyzed the local economic impact from FedEx
operations in 12 U.S. markets, including five
metropolitan areas (Indianapolis, Miami, Memphis,
Los Angeles, and Pittsburgh) and seven states
(Alaska, California, Florida, Ohio, New York,
Tennessee, and Washington). The analysis is focused
on the Transportation sector, where FedEx has
a significant impact on the sector’s overall net
economic output because of the company’s size
and scale of operations.
Even as FedEx made changes to its global operations
in response to challenging economic conditions
in FY 2023, the company remains a significant
employer in markets across the U.S. For example,
FedEx employed more than 40,000 people in both
Tennessee and California and nearly 20,000 in Florida
in FY 2023.
FedEx also continued to make substantial
contributions to market-level economies through its
spending with local suppliers. For example, FedEx
spent $2.2 billion with suppliers in California in CY
2022, followed closely by $1.5 billion spent with local
suppliers in Florida and $1.3 billion spent with local
suppliers in New York. Spending with local suppliers
also surpassed a half-billion dollars in several states,
including Ohio ($629.8 million) and Tennessee
($602.8 million).
These activities are part of the impact that FedEx
has on economic growth in the communities where
the company operates. The Transportation sector
in all 12 analyzed markets experienced GDP growth
in FY 2023, and Transportation sector GDP growth
was higher than overall GDP growth in nine of the 12
markets, reflecting the positive contributions that
FedEx makes to overall county and state economies.
16
As defined by the U.S. Bureau of Economic Analysis.
2023
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2023
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13
Tennessee
Tennessee’s location near the center of the country and its
network of major interstates, railroads, and airports makes it
an ideal transportation and logistics hub. The geographical
location and mild climate were contributing factors to FedEx
choosing to launch its services from Memphis International
Airport in 1973. Today, Tennessee remains the center of the
FedEx global network. The Memphis facility is the largest
FedEx Express air hub in the world, occupying more than
3.6 million square feet and capable of handling 484,000
packages per hour. To support future growth, FedEx is in
the midst of a multi-year, $1.5 billion investment to upgrade
and modernize its Memphis air hub.
The company’s presence in Memphis and across Tennessee
has expanded dramatically during the past 50 years as
FedEx has evolved into a global shipping and logistics giant.
Today, Memphis is home to the headquarters
for FedEx Corporation, FedEx Express, FedEx
Freight, FedEx Dataworks, and FedEx Logistics
— making FedEx the largest employer in the
metropolitan area.
Overall, FedEx operates 318 facilities and employs roughly
42,000 people in Tennessee, as of FY 2023.
In addition to the contribution of these wages and capital
investments, FedEx supports the Tennessee economy
through extensive purchases with local companies. In CY
2022, FedEx spent $59.3 million with suppliers in
Shelby County and $602.8 million with suppliers across
the entire state.
The deep roots that FedEx has developed in Tennessee also
include ongoing support for local nonprofit organizations.
For example, FedEx charitable giving in Memphis is
focused on enabling inclusive economic growth by helping
all residents gain access to education and employment
opportunities. That has led the company to support a
tuition-free high school aimed at adult learners who haven’t
earned their high school diplomas; a nonprofit that provides
affordable transportation options for under-resourced
individuals to get to school or work; and a job- and life-skills
training organization that helps Memphis residents break
cycles of unemployment.
A closer look at select markets in the U.S.
2023
Economic Impact Report | FedEx
14
Indiana
With its strategic location in the Midwest and extensive
transportation infrastructure, Indiana is a hub for
manufacturing, distribution, and logistics companies. Those
characteristics attracted FedEx to establish an air hub at
Indianapolis International Airport in 1988 to support the
company’s continued expansion. Today, the Indianapolis
facility is the second-largest FedEx Express hub in the
world, a 3 million-square-foot facility capable of sorting
up to 140,000 packages per hour and providing critical
flexibility and capacity for U.S. and global shipments.
The importance of this location inspired FedEx to launch
an ongoing, $1.5 billion project to expand and modernize
the Indianapolis hub. FedEx Express has also developed a
large aircraft maintenance facility at the Indianapolis airport
over the past 30 years, providing jobs for skilled aircraft
technicians.
Including the Indianapolis air hub, FedEx
operates 54 facilities in Marion County,
including a spin-off facility for the FedEx
Ground Indianapolis hub that provides
additional growth capacity for FedEx
Ground services in the state. Collectively,
these facilities employ roughly 7,200
people in the area.
FedEx also spent $78.3 with local suppliers in Marion
County in CY 2022. These contributions from FedEx
helped the Marion County Transportation sector achieve
1.8% GDP growth in FY 2023, outpacing the county’s
overall GDP growth rate of 1.1%.
Florida
As the country’s third-largest state by population and
fourth largest by GDP, Florida is a major driver of economic
activity in the U.S. The state’s proximity to the Caribbean
and Latin America also made it the ideal place for FedEx
to establish a Latin America and Caribbean (LAC) gateway
at Miami International Airport. A recently completed, $72
million project expanded the main sort facility by 138,000
square feet, introduced a new customs clearance area,
and added a 70,000-square-foot cold chain facility — the
largest in the FedEx global network. These enhancements
have helped streamline shipments between LAC and the
rest of the world.
FedEx also maintains a large network in Florida to
effectively serve customers across the state. The company
employs roughly 19,000 people at 254 facilities across
Florida and continued to expand that network in FY 2023
with the construction of a new ground distribution center
at Port Panama City. The 251,000-square-foot facility
serves as Regional Distribution Headquarters for FedEx
Ground service extending across the Florida panhandle,
from Tallahassee to Pensacola.
This network helped FedEx contribute to strong economic
growth in Florida’s Transportation sector. The sector’s
GDP increased 8.3% in FY 2023, compared to 3.3% growth
for Florida’s overall GDP. FedEx contributions to the state
economy also included $1.5 billion in spending with Florida
suppliers in CY 2022.
FedEx also uses its extensive Florida network and shipping
expertise to support the company’s chaitable Delivering for
Good program.
In FY 2023, FedEx transported seven
chimpanzees who had been rescued from
biomedical facilities to their new home at the
Save the Chimps sanctuary in Florida.
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Alaska
Alaska’s location in the far north and
west make it a strategic location for
commerce between the U.S. and Asia. With
the expansion of international shipping
following the company’s acquisition
of Flying Tigers Line in 1989, FedEx
established an air hub at Ted Stephens
Anchorage International Airport to provide
a critical transit point and refueling stop for
international shipments.
Today, the Anchorage hub is the
company’s third-largest U.S.
customs clearance port, capable
of sorting up to 25,000 packages
per hour.
To streamline and optimize operations
in Anchorage, FedEx is in the midst of an
estimated $200 million project to expand
and upgrade the air hub. One portion
of the project is focused on ramp and
gate improvements that are providing
new aprons, taxiways, and headstands
to accommodate nine B-777 gates and
three MD-11 gates. A second portion of
the project will construct a new facility for
FedEx Ground operations at the airport,
allowing those operations to move out of
the current location in the air hub facility
and into a brand-new facility connected by
an aircraft feeder ramp.
The activity at the Anchorage hub and
at 29 other FedEx facilities across Alaska
— which employ approximately 1,300
people — make valuable contributions to
Alaska’s Transportation sector, which is
one of the stronger-performing areas of
the state’s economy. In FY 2023, Alaska’s
Transportation sector generated 5.6% GDP
growth, compared to 1.4% growth for the
state’s overall GDP. FedEx also spent $20.5
million with local Alaska suppliers in
CY 2022.
California
California is a critical transit point for trade
between the U.S. and other countries, with
more than 40% of containerized cargo
imports and 30% of U.S. exports passing
through the state’s ports. To help move
these goods while also serving customers
across the country’s most populous state,
FedEx maintains an extensive network of
532 facilities and nearly 42,000 employees
in California. The company employs roughly
10,000 people in Los Angeles County
alone, many of whom work at the FedEx
Express sorting facility in Los Angeles — a
300,000-square-foot facility capable of
sorting up to 23,000 packages per hour.
FedEx facilities in the Los Angeles area are
connected to a major network of facilities
in the Inland Empire, where road and rail
hubs provide access to markets across
the country. For example, FedEx Ground
operates a hub in Rialto and a sorting
facility in Chino, while FedEx Express
operates an air hub at Ontario International
Airport. Further up the coast, FedEx has
a large presence near the busy port of
Oakland, providing a key international
transit point for shipments between the
U.S. and Asia.
With this infrastructure, FedEx makes
important contributions to California’s
Transportation sector, which experienced
3.6% GDP growth in FY 2023 — exceeding
the 1.1% growth rate for California’s overall
state GDP. FedEx spending with local
California suppliers also has a positive
impact on the state’s economy. In CY
2022, FedEx spent $2.2 billion with
California suppliers.
Recently, California has also become a
critical market for the company’s fleet
electrification efforts.
FedEx Express began operating
BrightDrop electric delivery vans
in California in FY 2022, and today
the company uses more than 400
EVs across the state.
2023
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2023
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Pennsylvania
With its location along the Northeast corridor and
120,000 miles of state and local highways,
Pennsylvania is a vital transportation hub that is
strategically positioned within one-day’s drive of
nearly 40% of the U.S. population.
FedEx plays a significant role in Pennsylvania’s
transportation sector by operating 169
facilities across the state, providing vital
links for north-south shipping along the
East Coast, and to points west.
FedEx added to its presence in Pennsylvania when
it acquired Caliber System Inc. in 1998, including the
Pittsburgh-based, small-package ground carrier RPS.
This service was rebranded to FedEx Ground in 2000,
with its headquarters remaining in Pittsburgh to this day.
FedEx has continued to make extensive investments in
the area to improve facilities and enhance the company’s
sustainability. For example, in 2022, the company
installed solar panel canopies over the parking lot at the
FedEx Ground Headquarters and announced that it will
open a $21 million, 250,000-square-foot FedEx Ground
distribution center in Hermitage.
Today, FedEx employs approximately 3,300 people in
Allegheny County and spent $43.9 million with local
suppliers in the county in CY 2022. With contributions
from FedEx, Allegheny County’s Transportation sector
GDP grew 3.7% in FY 2023, compared to 2.3% growth
for the county’s GDP as a whole.
Ohio
Ohio ranks fourth among the 50 states in manufacturing
GDP, leading the nation in the production of plastics and
rubber, fabricated metals, and electrical equipment and
appliances. To help connect Ohio businesses with their
customers and suppliers, FedEx operates a network of
153 facilities across the state staffed by nearly 14,000
employees, including major FedEx Ground hubs in
Columbus and Toledo and a recently opened large
package sorting facility in Etna.
FedEx contributions to the Ohio economy helped
generate 1.8% growth in the state’s Transportation sector
in FY 2023, outpacing the overall state GDP growth
rate of 1.1%. FedEx also contributes to Ohio’s economy
through spending with local suppliers, which reached
$629.8 million in CY 2022.
Notably, Ohio is also home to the
headquarters for FedEx Custom Critical,
a specialty service for shipments that
need extra attention and care.
FedEx Custom Critical provides expedited air and
road shipping for time-sensitive shipments, as well as
solutions for temperature-control shipments such as
healthcare products, high-security shipping, and white-
glove service for shipments that require special handling.
Additionally, FedEx Custom Critical has been recognized
by NorthCoast 99 as one of the best workplaces for top
talent in Northeast Ohio for more than 20 years.
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New York
New York’s diverse economy, known for
major contributions to global commerce,
finance, culture, and innovation, is the
third largest in the U.S. The state’s
transportation infrastructure and
location on the East Coast also make it a
vital transit point for international trade.
In 2022, New York was the fourth-largest
importer and exporter in the country.
To support this economy, FedEx operates
an extensive network of 222 facilities
across the state that employ approximately
14,000 people, stretching from the island
of Manhattan to upstate New York. These
facilities include a major FedEx Ground
hub in Syracuse and a new sorting facility
in Binghamton completed during FY 2023.
The 470,000-square-foot facility features
automated sorting equipment capable of
handling up to 22,000 packages per hour.
FedEx also spent $1.3 billion with local
New York suppliers in CY 2022.
These investments are part of the impact
that FedEx has on the New York economy.
In FY 2023, those contributions helped the
New York Transportation sector record
2.2% GDP growth, compared to 1.9%
growth for the state’s overall GDP.
New York City’s dense environment also
provides FedEx with an ideal location to
test new delivery innovations.
In FY 2023, FedEx expanded a
pilot program by rolling out more
BrightDrop Trace Move electric
carts (e-carts) to make holiday
season deliveries in five locations
in New York City — the Diamond
District, Theatre District,
Midtown, Midtown East,
and Brooklyn Heights.
The previous year, FedEx tested the carts
only in the Diamond District. FedEx is
exploring how last-mile solutions like
e-carts can help reduce vehicle idling and
redistribute delivery activity away from the
curb, helping to alleviate bottlenecks on
high-traffic streets. In the previous limited
Manhattan pilot, FedEx couriers increased
the number of total stops and stops made
per hour when using the e-carts versus
operations without them — a win for
couriers, customers, and the battle
against vehicle congestion.
Washington
International trade is a driving force in
Washington’s economy. Approximately
40% of all jobs in Washington are tied to
trade, making it the most trade-dependent
state in the nation. In 2022, Washington
was the sixth-largest exporting state by
value for merchandise and commodities.
To support this economic activity,
FedEx serves Washington with
118 facilities that stretch all the
way to the far Northwest corner
of the continental U.S., including
service by ferry to customers on
the San Juan Islands.
FedEx employs roughly 5,200 people in
Washington, and the company spent $347
million with local Washington suppliers in
CY 2022.
The company's Washington presence also
provides close proximity to two critical
FedEx suppliers: Boeing and Microsoft.
During the long relationship between
FedEx and Boeing, the two companies
have collaborated on the Boeing
ecoDemonstrator program, which uses
specially equipped airplanes to test
innovative environmental and safety
features.
In 2020, FedEx also launched a strategic
alliance with Microsoft to develop
enhanced digital commerce tools. The
project combines the FedEx network and
its logistics expertise with Microsoft’s
AI capabilities and cloud platform to
develop innovations such as FedEx
Surround, a supply chain visibility tool
that gives customers near real-time
insights into the movement of physical
inventory. In FY 2023, the two companies
announced Dynamics 365 Intelligent Order
Management, which combines FedEx
network intelligence with capabilities
from Microsoft Dynamics 365 to create
an omnichannel order management
application that uses data and visibility
from the FedEx network to help businesses
fulfill customer orders from the web,
mobile phones, social media, and brick-
and-mortar stores.
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FedEx began offering its first international
shipments to Canada in 1981 and has expanded
its footprint across North and South America and
the Latin America and Caribbean (LAC) region in
the decades since. Today, FedEx Express serves
more than 50 countries and territories across the
Americas with a network that reaches all the way
to the tip of South America.
The FedEx Express gateway at Miami International
Airport in Miami, Florida serves as the primary
connection point for markets across North and
South America. Thanks to an expansion of that
location in FY 2022 — which included additional
sort capacity, a new cold chain facility, and
a new customs clearance area to accelerate
international shipments by shortening customs
clearance times — these markets now have even
more connectivity to communities within the
Americas region and around the world. These
improvements and expedited transit times are
critical, especially when it comes to shipping
perishable products. For example, Colombia is
the largest supplier of fresh flowers to the U.S.,
and farmers rely on FedEx to reach 99% of U.S.
destinations in less than three days from the time
flowers are cut.
FedEx Express continued to invest in the region
in FY 2023 to enhance service and support
economic activity, including improvements to the
FedEx Express distribution center in Pudahuel,
Santiago, Chile. See a detailed description of this
project and other local initiatives in the Americas
later in this section.
With this presence, FedEx has a large direct
impact on the regional economy. In FY 2023,
FedEx operations across the Americas (including
the company’s U.S. operations) contributed 2.1%
of net economic output in the Transportation,
Storage, and Communications sector.
17
FedEx also indirectly contributed an additional
$13 billion to net economic output in North
and South America in FY 2023. The company’s
indirect impact was key in the Transportation,
Storage, and Communications sector
18
where
FedEx contributed $8.3 billion (estimated)
to net economic output. However, FedEx
also had a large indirect impact on other
critical sectors in the Americas, such
as Manufacturing. In FY 2023,
FedEx indirectly contributed
$1.8 billion (estimated) to the
Manufacturing sector.
19
Spotlight: The Americas
17-19
As defined by UNCTAD.
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2023
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Brazil
Brazil is the largest economy in South America and the seventh-largest economy in
the world. Since FedEx began service in Brazil in 1989, the company has expanded
its operations alongside the country’s economic power.
One of the most important developments came when FedEx acquired Rapidão
Cometa in 2012, which expanded the company’s presence in the country by adding
to the existing international service capacity and domestic transportation and
logistics services within Brazil. The global integration of TNT’s network following
its acquisition by FedEx in 2016 further expanded the company’s presence in
the country.
Currently, FedEx employs approximately 11,000 team members
across Brazil. The FedEx network includes a gateway that offers five
international flights per week, along with nine domestic hubs that
connect to more than 5,300 locations in Brazil and provide highway
access to four other countries in South America.
With its growing presence in Brazil, FedEx Express has also strengthened its
support for local communities through expanded charitable giving and volunteer
efforts. For example, the company has run a program for seven years focused on
recycling FedEx uniforms into blankets that are donated to charitable organizations.
In FY 2023, FedEx Express recycled around 1.5 tons of old uniforms that were
transformed into 5,500 blankets distributed to institutions supporting people in
vulnerable situations and animal protection services in winter. Since inception, the
uniform recycling program has benefited around 60 institutions, approximately
16,000 people, and 4,000 pets.
A closer look at select markets
in the Americas
2023
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Chile
FedEx began operations in Chile more than 30 years
ago and today runs the country’s largest national
delivery network.
With service extending to more than
400 communities over more than 500
operational routes — from the northern
port city of Arica to Punta Arenas in
Chile’s southernmost Patagonian region
— FedEx Express connects businesses
and customers across the country, and to
the rest of the world through five weekly
international flights.
In recent years, FedEx Express in Chile has invested in
its facilities, introduced state-of-the-art equipment,
and modified its fleet configuration to pursue
sustainability goals and better serve small- and
medium-sized businesses that have experienced
rapid growth in e-commerce sales. In FY 2023, FedEx
Express expanded its distribution center in Pudahuel,
Santiago from 7,600 square meters to 14,000
square meters. The installation of advanced sorting
equipment has enabled the facility to process 6,000
packages per hour, doubling its original capacity. The
rate at which packages are simultaneously loaded
into vehicles increased by more than 30%. These
improvements reduce processing time and accelerate
package pickup and delivery services for the largest
e-commerce-focused distribution center in South
America. During the expansion of the Pudahuel
distribution center, FedEx Express also installed EV
charging infrastructure to support the company’s
goal of achieving carbon neutral operations by 2040.
FedEx Express has also transformed its fleet in Chile
to better serve the needs of smaller, e-commerce-
focused businesses. The number of vans in the fleet
grew from 235 in 2020 to 327 in CY 2023 — an
increase of almost 40%. Vans now account for 35%
of the total vehicle fleet in Chile used to handle small
packages.
At the same time, FedEx Express continued to
improve the efficiency of its larger trucks. At the
beginning of CY 2023, FedEx Express in Chile
introduced its first tractor trucks with engines that
meet the EPA2010 GHG21 standards, exceeding
Chile’s existing environmental standards for heavy-
duty engines. The company also implemented
comprehensive training for drivers and projects
related to the use of wide tires and engine power
set-up improvements. Through these efforts, FedEx
Express has achieved 5.8% improvement in energy
efficiency in its fleet of 97 tractor trucks and 154
trailers that make daily trips on Chile’s highways, and
reduced CO
2
emissions by 291 tons throughout the
fiscal year.
These efforts helped FedEx Express ground
operations in Chile achieve certification from
Giro Limpio for the fourth consecutive year. An
initiative of Chile’s Energy Sustainability Agency,
Giro Limpio recognizes companies for improving
the environmental impact of their operations
with ongoing initiatives in fuel, motor oil, and tires
to reduce greenhouse gas emissions and fuel
consumption relative to the load transported and the
number of kilometers travelled.
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2023
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21
Canada
FedEx ventured into Canada more than 35 years
ago, marking its first international market. The
company selected the Greater Toronto Area as
the headquarters for FedEx Express Canada,
and it has steadily expanded its presence across
the country since then.
As of May 2023, FedEx Express
Canada operated with nearly
3,500 team members stationed at
70 locations, providing an extensive
network of services. With 331 intra-
Canadian flights and 116 international
flights each week, along with ground
service facilitated by approximately
5,000 vehicles, FedEx Express serves
communities throughout the
vast country.
Over the years, Toronto has remained a pivotal
location for FedEx Express Canada. Among
its assets is its largest hub at Toronto’s Lester
B. Pearson Airport, one of the company's
three hubs in the country. The impressive
342,000-square-foot facility has the capacity
to process around 140,000 packages per day.
In the nearby area of Etobicoke, FedEx Express
inaugurated a new small-package sorting facility
in 2020. The facility was strategically established
to support the growing e-commerce industry
in Canada. Equipped with the latest technology,
it stands as the fastest FedEx Express facility
in the country, capable of sorting up to 20,000
small packages per hour.
Toronto has also been a launch site for FedEx
Express sustainable delivery solutions. The
company began testing its initial fleet of e-cargo
bikes in Toronto in 2020, providing a crucial
proof-of-concept for sustainable delivery
options in urban areas. Subsequently, FedEx
extended the use of e-bikes across Canada
and in other markets, helping to move the
company toward its goal of reaching carbon-
neutral operations by 2040. In 2023, FedEx
Express began conducting a second Toronto
pilot of BrightDrop’s Trace Move propulsion-
assisted, e-cart. This innovative solution aims
to improve delivery efficiency and decrease
physical strain on delivery drivers by streamlining
the movement of goods from delivery vehicles
to the customer’s doorstep in dense urban
areas. Moreover, it has the potential to minimize
vehicle idling and mitigate traffic bottlenecks
by redistributing delivery activity away from
congested curbs.
This history of expansion and innovation have
helped support economic growth in Canada.
With its nationwide FedEx Express footprint,
along with additional shipping and logistics
services offered by FedEx Ground, FedEx
Freight, and FedEx Logistics, the company is
committed to connecting communities across
the country and providing a vital link between
Canada and the rest of the world.
2023
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22
20-21
As defined by UNCTAD.
FedEx began intercontinental service to Europe
with the acquisition of Gelco Express International
in 1984. This was followed by the opening of the
company’s primary air hub in 1999 at Roissy-
Charles De Gaulle Airport (CDG) in Paris. Since then,
FedEx Express has significantly expanded and
improved its European network, now serving more
than 45 countries across the continent.
The acquisition of TNT Express in 2016 added
a second air hub at Liège Airport in Belgium to
connect large European markets and critical road
networks that connect countries within Europe and
in other regions such as the Middle East. Building
on these additions, FedEx Express continued
making investments to optimize its network in
Europe in FY 2023, including the installation of new
sorting equipment at its Stuttgart, Germany facility
to improve package handling speed; the opening
of a new ground operations center in Gdansk,
Poland; and the completion of major road hubs in
the Netherlands and Italy that will further improve
intra-European shipments and support economic
activity across the continent. Read more about the
new road hubs in the Netherlands and Italy later in
this section.
With these investments and the company’s
ongoing operations in Europe, FedEx directly
contributed an estimated 0.4% to net economic
output in the Transportation, Storage, and
Communications sector
20
in FY 2023 — a sector in
which total net economic output was estimated
to have increased nearly 6%, to $2.1 trillion,
year-over-year.
In addition to its direct impact, FedEx indirectly
contributed approximately $2.4 billion to net
output across the entire European economy in
FY 2023. As in other regions, FedEx made
the largest (estimated) contribution
to the Transportation, Storage, and
Communications sector
21
($881
million), which is closely related to
the company’s core services.
Regional spotlight: Europe
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The Netherlands
The Netherlands is a critical location
for FedEx on the European continent,
home to the FedEx Express European
headquarters in Hoofddorp and over
3,100 employees across more than 30
facilities.
FedEx Express made a major
investment in the Netherlands
during the last two years by
rebuilding and improving its
international road hub in Duiven.
The modernized hub reopened in April
2023 with increased handling capacity,
improved reliability, and an enhanced
working environment for team members.
The 24,000-square-meter facility now
employs a state-of-the-art sorter that
can process 200,000 parcels a day. The
Duiven site’s overall area of 148,000
square meters also can accommodate far
more vehicles than it could in 2021, with
more docks, improved yard operations,
and a 20% increase in the trailer parking
area. All these improvements represent a
three-fold increase in the hub’s capacity.
These investments made Duiven one of
the most technologically advanced of the
28 FedEx Express road hubs in Europe,
offering improved service to European
customers thanks to its central location
in the “Blue Banana,” a densely populated
corridor of vibrant economic activity
that stretches between northwest
England and northern Italy. The hub
also provides a key connection point to
all other European FedEx Express road
hubs, a network that links 45 European
countries, serves more than 700 pickup
and delivery stations, and handles 1.3
million international shipments per week.
A closer look at
select markets in Europe
2023
Economic Impact Report | FedEx
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Italy
FedEx strengthened its operations in Italy
with the opening of a new road hub in
Novara in FY 2023. Located at the heart of
the European road system and with easy
access to the primary FedEx Express air
gateway at Malpensa Airport, the Novara
hub is ideally positioned to serve the vital
economic regions in the Mediterranean
Basin. The €70 million facility features
separate freight and package buildings
with the capacity to sort and handle
21,600 small parcels, 8,000 documents,
and 4,000 shipments of heavy and bulky
items per hour. The facility is also certified
at the LEED Gold level, reflecting the
company’s commitment to minimize its
environmental impact.
The new road hub builds on several years
of FedEx Express investment in Italy,
including the creation of new air gateways
in Bologna and Roma Fiumicino, as well
as an expansion of the Venice gateway
during the second half of 2022. The new
gateways, which are part of an initiative
to better integrate air networks in Europe,
added more than 15,000 square meters of
space for improved sorting capacity and
added network reliability.
In addition to the 450
jobs created at the Novara
road hub, FedEx Express has
added to its workforce across
Italy by shifting from external
suppliers to direct hires for
handling operations at its
domestic hubs and some ground
operations stations.
Since 2021, the change has added nearly
1,000 new direct employment positions. In
April 2023, FedEx Express also announced
plans to add over 200 more positions at
nine ground stations located in Palermo,
Catania, Naples, Roma Cinecittà, Roma Est,
Venice, Verona, Bergamo, and Brescia.
France
Opened in 1999, the FedEx Express
hub at Charles De Gaulle Airport (CDG)
in Paris is now the company’s largest
hub outside of the U.S., providing vital
air connections between Europe, North
America, the Middle East, and Asia.
The importance of this location
inspired FedEx to invest more
than $600 million in the facility
since 1999, resulting in a state-of-
the-art hub that offers customers
faster, more reliable service.
Modernization improvements include a
high-speed, automated sorting system
that expanded the facility’s sorting
capacity by 46% with the ability to
process up to 68,000 packages per hour.
Other upgrades focus on important
sustainability features, including 500
square meters of solar panels to provide
hot water in the facility and LED lighting
and sensor controls to save energy. More
than 80% of the ground vehicles in the
FedEx fleet at CDG run on electricity or
liquefied petroleum gas (LPG) to reduce
carbon emissions.
With these improvements, FedEx Express
employed more than 5,000 people in the
area around the CDG hub in FY 2023 and is
estimated to contribute nearly €1.9 billion
to the local economy annually.
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Regional spotlight: AMEA
22-24
As defined by UNCTAD.
FedEx began service to Asia in 1984 and today
serves more than 100 markets across the Asia
Pacific, Middle East, and Africa (AMEA) region.
For nearly 40 years, FedEx has strengthened its
network in the AMEA region to support some of
the world’s largest and fastest-growing economies.
FedEx Express operates its Asia Pacific air hub at
Baiyun International Airport in Guangzhou, China
and sub-regional hubs at Kansai International
Airport in Osaka, Japan; Changi International
Airport in Singapore; Pudong International Airport
in Shanghai, China; and Dubai International Airport
in the United Arab Emirates. To accommodate
international shipment growth, the company has
increased connectivity to and from the region over
the past several years. The FedEx footprint in the
region also includes sub-regional headquarters in
Shanghai, China; Tokyo, Japan; Singapore; Sydney,
Australia; and Mumbai, India.
In FY 2023, FedEx continued to invest in its network
and services, including an AI-powered intelligent
sorting robot at its sub-regional hub in Singapore in
December 2022. This improvement is an example of
the company’s efforts to digitize its operations and
build a smart logistics network. FedEx also opened
several new facilities in the region, including a new
pickup, delivery, and self-pickup/drop-off station in
Taoyuan City, Taiwan; a new warehouse in Batam,
Indonesia; a new vehicle ramp at the Penang,
Malaysia gateway warehouse; and new air gateways
in Australia and South Korea that are described in
detail later in this section.
With these investments, along with the impact of
ongoing FedEx operations, FedEx Express
contributed 0.3% of net economic output in the
Transportation, Storage, and Communications
sector
22
in the AMEA region in FY 2023. Across
all sectors of the AMEA economy, FedEx Express
contributed 0.02% of total net output, which grew
approximately 6% in FY 2023 to $44 trillion.
Beyond its direct impact, FedEx Express indirectly
contributed $2.7 billion to the economy of the
AMEA region in FY 2023. Among specific
industries, FedEx Express indirectly
contributed $1.0 billion to the region’s
critical $9 trillion Manufacturing
sector (estimated).
23
The company’s
indirect contribution to the
Transportation, Storage, and
Communications sector
24
was estimated as
$772 million.
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26
Australia
The extensive FedEx Express network in Australia connects
businesses and communities throughout the country and
across the Tasman Sea to New Zealand. The company
employs more than 5,100 team members in Australia and
operates five gateways, 56 stations, 2,600 vehicles, and 24
flights in and out of the country each week to provide
global connectivity.
In FY 2023, FedEx continued to strengthen its already
extensive and deep domestic network within Australia
through investments in new infrastructure, expanded
shipping options, and innovative digital solutions —
enabling local Australian businesses to reach domestic and
worldwide markets in a timely and efficient manner.
One highlight is the opening of a new Adelaide
gateway that was developed in response to
major freight upgrades at Adelaide Airport.
The 64,000-square-meter facility is the largest single
express sorting facility in South Australia and is equipped
with an advanced automated sorting system that will help
accommodate surging air freight volume in Adelaide that is
expected to more than double in the next 20 years. With its
enhanced capabilities, the Adelaide gateway will streamline
importing and exporting and provide local businesses
more reliable access to other cities in Australia. The new
facility also enables one-day delivery service to homes
and businesses in an additional 130 postcodes across
metropolitan and regional South Australia, helping improve
last-mile delivery service for businesses of all sizes. Further,
the gateway includes extensive sustainability features, like
EV charging stations, a 4,500-square-meter skylight to
provide natural light, and 100% LED lighting that reduces
electricity usage by 50% annually compared to
traditional lighting.
FedEx Express also expanded its shipping capacity between
Australia and New Zealand in FY 2023 to support the strong
bilateral trade relationship between the two countries. The
company added five new weekly trans-Tasman flights that
directly connect Christchurch, Auckland, and Melbourne,
bringing the total number of FedEx Express weekly flights
between the two countries to 10. Additional service
improvements include longer cut-off times in Melbourne
that give customers more time to prepare shipments,
access to next-day International Priority shipping between
Christchurch and Australia, and a one-day improvement in
International Priority Freight for shipments from Melbourne,
Sydney, and Brisbane to Christchurch.
Additionally, FedEx Express enhanced customers’
digital experience in FY 2023. The company announced
a collaboration with Starshipit, a leading shipping and
fulfilment platform for small- and medium-sized businesses
that allows e-tailers to easily tap into the international
e-commerce market. FedEx Express also launched FedEx®
Delivery Manager International, a digital e-commerce
delivery solution for residential customers in Australia and
New Zealand. The interactive delivery solution is available as
a WhatsApp service in Australia, which will facilitate last-mile
deliveries for small- and medium-sized businesses.
A closer look at select markets in AMEA
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China
China is home to one of the largest FedEx
operations in the world, where a team of more
than 11,000 employees helps operate over 100
FedEx stations nationwide, a fleet of more than
3,000 vehicles, and 300 purple tail flights in
and out of the country each week. In FY 2023,
FedEx Express continued to invest in its China
operations to empower the country’s small-
and medium-sized businesses with enhanced
connections to global markets.
FedEx Express announced plans to
upgrade its Guangzhou gateway by
establishing a new FedEx South China
Operations Center in Guangzhou.
Guangzhou is China’s international trade
center, where the total value of imports and
exports reached 1.09 trillion RMB in 2022
and accounted for 13.2% of foreign trade in
Guangdong Province. The new facility will cover
an area of more than 41,000 square meters
— more than double the size of the current
Guangzhou gateway. These improvements
will provide stronger support for shipments
between South China and global markets and
facilitate cross-border trade in the region.
In establishing the South China Operations
Center, FedEx Express also signed a
Memorandum of Understanding with
Guangzhou Municipal Government to fully
cooperate on customs clearance and cross-
border e-commerce. This agreement will
help improve customs clearance efficiency,
connect customers in Guangzhou and southern
China more effectively to global markets, and
further promote the development of small-
and medium-sized business and cross-border
e-commerce.
In a similar agreement, FedEx Express
established a strategic collaboration with the
Xiamen Municipal Government and signed a
Memorandum of Understanding with Xiamen
Transportation Bureau to explore opportunities
to strengthen cooperation in various areas,
including air network planning, infrastructure,
supply chain management, cross-border
e-commerce, and sustainable logistics.
FedEx Express also continued to collaborate
with private-sector companies in China to help
small- and medium-sized businesses engage in
foreign trade. Important relationships include
an alliance with DianXiaoMi, a compatible
provider offering a wide range of logistics and
warehouse management, and PingPong, a
leading cross-border trade payments platform.
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India
With the world’s largest population, India is
a critical player in the global economy and a
strategic priority for FedEx. Since beginning
operations here in 1984, FedEx Express has
focused on growing its business in India. As of
May 2023, India is home to more than 2,900
FedEx Express employees and three major
international gateways. In FY 2023, FedEx
Express continued to expand its network in
the country while also making investments to
support sustainability and innovation.
Recently, FedEx improved its current gateway
based in the New Delhi Cargo Complex.
The 18,000-square-foot facility includes
offices, semi-automated systems capable
of sorting up to 8,500 packages per hour,
and warehouse operations. The building’s
design includes sustainable features such
as solar energy and an advanced variable
refrigerant volume cooling system that
reduces electricity consumption by an
estimated 15%. These energy-saving features
build on other sustainability advancements
in India that are helping move FedEx closer
to its environmental sustainability goals. For
example, FedEx Express has incorporated
electric vehicles into its Delhi operations;
added digitized shipping solutions such
as WhatsApp integration, FedEx Delivery
Manager International, and FedEx Electronic
Trade Document for customers; as well as
launched FedEx® Sustainable Insights, a cloud-
based platform that gives customers visibility
into the carbon footprint of their shipments.
FedEx Express also made investments to
support India’s innovation economy.
The company announced plans
to open its first Advanced
Capability Community (ACC)
in Hyderabad, India.
The FedEx ACC will be staffed by full-time
employees to support the development
of technological and digital innovations
that enable FedEx to provide even greater
value in the global supply chain ecosystem.
Hyderabad’s engineering and digital enterprise
talent pool made it an ideal location for the
first of several ACCs planned for different
locations around the world.
The company also launched the FedEx
Innovation Lab (FIL) to make investments
in early-stage digital start-ups in India as
well as the wider region. FIL has made two
investments: one in a computer vision and
Artificial Intelligence (AI) company that offers
an industry-leading AI platform to help
marketing, product, and technology teams
optimize their operations, and another in a
leading global circular supply chains solutions
provider for e-commerce brands.
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South Korea
South Korea is the fourth-largest exporter in Asia and
the world’s fifth-largest e-commerce market.
To better serve customers in the country,
FedEx Express enhanced its already
extensive network in South Korea — which
includes 21 Express stations, 410 vehicles,
and 1,140 team members — by opening
the new FedEx Express Incheon gateway
in FY 2023.
Opened in November 2022 at Incheon International
Airport, the 23,395-square-meter facility includes
advanced automated sorting equipment and 78
conveyor belts with the capacity to sort 12,000
packages per hour — double the capacity of the
previous facility. The gateway connects to the
extensive FedEx network with 58 purple tail flights
into and out of South Korea each week. These
enhanced capabilities will open up new possibilities for
small- and medium-sized business and heavy freight
shippers seeking access to the U.S., Europe, and intra-
Asia markets.
FedEx strengthened its services for customers in
South Korea with earlier scheduled flights from
Guangzhou to Incheon, combined with faster package
processing capabilities at the new FedEx Incheon
gateway. The company improved inbound delivery
times to offer same-day delivery of packages arriving
from the U.S., Europe, and Asia to customers in Seoul
and the greater Seoul area, and same-day delivery to
customers nationwide for packages arriving from Asia
and Europe.
The new gateway is also designed to meet growing
demand for cold-chain shipments, with three separate
refrigeration chambers that are built to comply with
the European Medicines Agency’s Good Distribution
Practice standards for temperature-controlled
storage. The new cold storage facilities provide a five-
fold increase in refrigeration capacity to support the
transport of a wider-range of temperature-sensitive
shipments, such as vaccines, samples for clinical trials,
and other perishable items.
Built with a focus on sustainability, the FedEx Express
Incheon gateway is certified as a Green Standard for
Energy and Environmental Design (G-SEED)
25
facility.
Nearly one-fifth (19%) of the facility’s required energy
is supplied by electricity from 2,400 rooftop solar
panels, and the building’s green roof reduces heat
transfer to lessen demand for heating and cooling.
More than 1,000 square feet of skylights increase
natural light, with all other illumination supplied by
energy-efficient LED lighting. The facility also collects
and re-uses rainwater to reduce water consumption.
In addition to these facilities investments, FedEx has
enhanced convenience for customers by adding self-
service collection at 12,000 7-Eleven stores in South
Korea to give small- and medium-sized business more
options to reach their customers.
25
Green Standard for Energy and Environmental Design (G-SEED) is a certification system managed by the government of South Korea to evaluate the environmental friendliness of buildings.
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Throughout its 50-year history, FedEx has
supported the entrepreneurs and small- and
medium-sized businesses (SAMs) that are a
driving force in the global economy. The company
has developed shipping, logistics, and printing
services that connect SAMs to their customers.
At the same, FedEx is committed to helping SAMs
strengthen and expand their operations through
resources such as online FedEx Small Business
Centers in several regions, international trade and
e-commerce education programs, and partnerships
with nonprofits and small-business accelerator
programs. FedEx also directly supports small
businesses through its supplier spending — 90%
of FedEx suppliers are SAMs, and FedEx purchases
with those companies supported nearly 530,000
jobs in CY 2022.
FedEx expanded its commitment to SAMs 11
years ago by creating the FedEx Small Business
Grant Contest. This annual awards program
provides funding to help successful entrepreneurs
and small companies accelerate their growth. To
date, the contest has awarded nearly $2 million
in grant money and credits for FedEx services,
and has been offered in the U.S., Canada, Europe,
AMEA, and LAC.
Supporting the success of small
businesses around the world
Throughout FY 2023, FedEx awarded small business
grants to 77 companies around the world:
•
In the U.S., 10 companies received grants from the FY 2023 Small
Business Grant Contest, including a technology company that
provides virtual reality therapy to pediatric patients, a premium
cupcake bakery, and a company that recycles food waste into
organic biofertilizer. One winner, a veteran-owned pet supply
company, also received an additional grant courtesy of USAA as
part of the contest’s commitment to support veteran-owned
businesses.
•
In AMEA, four companies received grants in FY 2023, including
a grand prize awarded to GoKwik, an India-based company that
provides artificial intelligence and machine learning software to
help e-commerce businesses increase their sales.
•
In LAC, 63 companies received grants in FY 2023, including first-
place winner My Foods. My Foods is a Chilean company that
produces gluten-free flours and ready-to-make baking mixes
while promoting education on celiac disease and food allergies.
Learn more about the
FedEx Small Business Grant contest at
fedex.com.
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The FedEx Effect extends beyond the impact of the company’s business
activities. For 50 years, FedEx has worked to improve the prosperity and health
of the communities it serves through annual charitable giving, in-kind shipping,
and team members’ volunteer efforts.
In 2019, FedEx Cares built on this legacy of giving back by launching its ambitious 50 by 50
campaign, which aimed to positively and directly impact 50 million people by the company’s 50
th
birthday in April 2023 — mission accomplished!
FedEx team members exceeded this goal by
collaborating with and supporting more than 900 nonprofit organizations around the globe that
provide humanitarian aid, promote the next generation of entrepreneurs, support underserved
communities, and prioritize sustainable solutions for a cleaner, safer, and more equitable world.
$58.6M
in
total charitable
contributions
in FY 2023
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FedEx Cares
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Examples of FY 2023 charitable donations
around the world:
•
In June 2022, FedEx provided a donation to the U.S.
Chamber of Commerce Foundation to motivate small
businesses to prepare for disasters and to provide
funding for 100 disaster recovery grants awarded to
small businesses impacted by disasters.
•
In July 2022, FedEx Express in China expanded its
collaboration with the Library Project team of the Wuxi
Lingshan Charity Foundation to cover more schools in
rural areas. The annual FedEx Library Program donates
reading rooms or book corners to rural primary schools
in underprivileged areas across China and empowers
rural teachers with the tools to become better reading
instructors. Since 2012, more than 500 FedEx team
members have been actively involved in the FedEx
Library Program, which has established 32 libraries and
donated 30,800 books, benefiting more than
5,400 children.
26
•
After the historic flooding across Kentucky in August
2022, Heart to Heart International delivered life-saving
prescription medicines and supplies to families trapped
by the disaster via a mobile medical van donated
by FedEx.
•
In August 2022, FedEx Express in India donated
electric bikes and solar panels to the Akshaya Patra
Foundation, helping them adopt sustainable solutions
in their day-to-day operations. The savings derived
from these solutions enabled the non-governmental
organization to feed more than 2,800 children during a
complete academic year.
•
In January 2023, FedEx Express in Indonesia
collaborated with YKAN Foundation on a year-long
program to support seaweed farmers in the Wakatobi
Regency with training on ecologically sustainable
farming practices and cross-border e-commerce
opportunities.
27
•
In February 2023, FedEx provided a donation to the
Red Cross to support aid and recovery efforts for
earthquakes that impacted Turkey and Syria.
•
In March 2023, FedEx helped launch the ninth Vital
Voices (VV) GROW Fellowship cohort, expanding
the program from 50 to 100 participants from 42
countries. The fellowship provides business skills
training and mentorship to women entrepreneurs
leading purpose-driven businesses that advance the
U.N. Sustainable Development Goals.
•
In May 2023, global eye cares nonprofit Orbis
International, with generous support from FedEx,
launched its first surgical program since 2020 on board
the Flying Eye Hospital — a fully accredited ophthalmic
teaching hospital on board a plane donated by
FedEx. For three weeks, Orbis trained 50 eye care
professionals from the Can Tho region of Vietnam
to treat the leading causes of blindness and visual
impairment in their communities.
•
In May 2023, FedEx Express awarded a grant to Slow
Food Italy, a nonprofit association committed to
protecting food biodiversity. The grant will help fund
10 new FedEx-sponsored Slow Food Presidia and two
new Earth Markets to further promote and preserve
local food biodiversity throughout Italy.
28
•
FedEx sponsors the FedEx/Junior Achievement
International Trade Challenge, which aims to
nurture the entrepreneurial spirit and business
skills of students. In FY 2023, nearly 5,000 school
students from 10 AMEA markets participated in the
competition. Since 2007, this program has impacted
more than 45,000 students across the region.
26-27
Funds provided in cooperation with United Way Worldwide.
28
Funds provided in cooperation with United Way Worldwide and Charities Aid Foundation.
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33
Examples of FY 2023 team volunteering
across the globe:
•
In November and December 2022, team
members in Hungary and Romania volunteered
their time toward repair and building projects
with Habitat for Humanity, a global housing
nonprofit organization that helps people build
or improve a place they can call home.
•
Team members across the U.S., Canada, Chile,
and Puerto Rico volunteered to provide more
than 8,400 pairs of shoes and more than
18,500 winter coats, funded by FedEx, to
children at 70 schools in collaboration with
nonprofit Operation Warm.
•
In Chile, Colombia, and Argentina, FedEx
teams volunteered more than 3,500 hours
throughout the fiscal year to help more than
19,000 families in need.
•
In India, more than 200 team members
volunteered their time toward painting nine
playscapes in multiple cities that will help
develop the cognitive skills of children from
underserved areas. These playscapes were
built using recycled material and benefited
more than 6,500 children.
•
In March 2023, FedEx Express volunteers in
Panama and Guatemala built four emergency
homes over 700 hours with TECHO, a nonprofit
organization dedicated to fighting poverty in
Latin America.
•
In April 2023, more than 150 team members
in Dubai and Cairo volunteered a total of 300
hours to sort and pack approximately 4,800
food boxes for the underprivileged during the
month of Ramadan.
•
Team members around the world gave back to their communities
through the 50 Days of Caring initiative, consisting of more than 200
service projects and culminating in more than 17,300 volunteer hours
during the 50 days leading up to the company’s 50
th
birthday.
•
On the company’s 50
th
birthday on April 17, more than 2,500 team
members volunteered over 6,800 hours at more than 60 service
projects globally.
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34
Examples of FY 2023 in-kind shipping:
The FedEx Delivering for Good program works with aid organizations
around the world to mobilize the company’s transportation network to
provide disaster relief.
•
In June 2022, FedEx delivered two Humvee ambulances that the company donated
and 52 tons of critical medical aid to first responders and healthcare providers in
Ukraine. Separately, FedEx also delivered 750 emergency medical backpacks to
Ukraine on behalf of the nonprofit Direct Relief, with each backpack containing
enough resources to serve up to 500 people.
•
In September 2022, FedEx responded to Hurricane Ian in Florida in numerous ways,
including donating and shipping 20,400 ready-to-eat meals to the American Red Cross.
•
In November 2022, FedEx supported Direct Relief by transporting 2,000 pounds of
cholera treatment supplies to Haiti.
•
In early 2023, FedEx delivered 17 tons of essential items to victims of wildfires in Chile.
•
In February 2023, FedEx announced it had committed more than $1 million worth of in-
kind shipping to help provide relief to those affected by the earthquakes that devasted
Turkey and Syria. FedEx delivered relief supplies that included water treatment systems
and water purification packs; hygiene kits; medicines and medical supplies; PPE; and
infant formula.
•
FedEx also supported multiple nonprofits to assist with relief efforts following
Hurricane Fiona in Puerto Rico and tornados in Mississippi and Arkansas.
These positive impacts are the result of dedicated work by the nonprofit organizations
FedEx supports along with the volunteer efforts of FedEx team members. Exceeding the
50 by 50 goal has inspired FedEx to continue developing new ways to support people and
organizations strengthening communities in the years to come. In that spirit, the company
announced the FedEx Founders’ Fund on April 17, 2023, a new endowment to honor
founder Frederick W. Smith’s legacy. To launch this initiative, FedEx Cares has committed
an initial $2 million to provide awards to entrepreneurs and nonprofit organizations
selected by FedEx team members around the world.
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35
FedEx has targeted
investments in three key areas:
Vehicle electrification
Sustainable energy
Strategic investments in the
development of climate solutions
like carbon capture research
FedEx has a 50-year history of growth
and evolution. Just as the company
transformed how people and businesses
connect over those 50 years, FedEx has
been working to create a more sustainable
future, illustrated by the company’s
goal to achieve carbon neutral operations
by 2040
.
Between FY 2009 and FY 2022,
FedEx reduced carbon dioxide emissions
intensity on a revenue basis by 48.9%,
even as average daily package volumes
grew by 142% during the same period.
The company’s Practical Sustainability
philosophy and Reduce, Replace,
Revolutionize approach guide the
sustainability strategy and steps towards
its goal of carbon neutral operations.
FedEx team members are working to
reduce the environmental impacts of their
operations, replace the status quo with
better and more sustainable solutions,
and innovate responsibly by pursuing
the revolutionary new technologies of
the future.
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Delivering a more
sustainable future
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2022 EI Report | FedEx
Vehicle electrification
Transitioning commercial fleets to electric vehicles can
play an important role in combatting climate change. With
an overall fleet of 210,000 motorized vehicles, FedEx has
a goal to convert a substantial portion of its vehicle fleet,
particularly its parcel pickup and delivery (PUD) vehicles,
to electric vehicles (EVs).
•
FedEx has already built out hundreds of charging
stations across its U.S. facilities to support the
electrification of the company’s PUD fleet as well
as the EV transition of service providers. As of the
end of FY 2023, FedEx Express operated more than
400 BrightDrop Zevo 600 electric delivery vans in
California. Additionally, FedEx is working to electrify
non-road equipment like forklifts and airport ground
service equipment. For example, FedEx Freight has so
far converted 15% of its forklift fleet to electric.
•
In China, FedEx operated 381 EVs in FY 2023,
accounting for 13% of its local fleet.
•
FedEx Express introduced EVs in several other markets
across Asia in FY 2023, including Malaysia, Singapore,
Taiwan, and Thailand.
•
In Canada, FedEx operates 43 e-cargo bikes across five
provinces. Since 2020, these bikes have travelled more
than 116,000 kilometers, averting an estimated 32
tonnes of CO
2
so far.
•
In FY 2023, FedEx Express introduced dozens of EVs
in markets across the Middle East and Africa, including
30 electric delivery vehicles in India that are expected
to help avoid more than 1.3 tons of carbon emissions
annually, each. Additionally, the company introduced
10 EVs in South Africa and 14 in Jordan, e-cargo bikes
in Morocco and Pakistan, and completed an electric
delivery van pilot program in the UAE.
•
In October 2022, FedEx Express announced the
installation of 114 electric vehicle charging terminals
at key facilities in north and south London, Madrid,
Amsterdam, Paris, and Strasbourg. This critical
infrastructure will lay the groundwork for FedEx to
meet its fleet electrification goals in the coming years.
•
FedEx increased its use of EVs across the LAC region.
For example, the company added nine new EVs into its
Brazil operations, specifically in the northeastern cities
of Recife and Salvador, in March 2023 and introduced
the first eight EVs into its Mexico City operations in
May 2023. FedEx also completed e-cargo bike pilots in
Colombia, Chile, and Mexico City in FY 2023.
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Fuel conservation and sustainable fuels
FedEx is also working to reduce aircraft and road vehicle
emissions through fleet modernization and the use of
cost-effective alternative fuels.
•
Globally, FedEx avoided using 150 million gallons of jet
fuel by modernizing its aircraft in FY 2022 — equivalent
to a 10.76% reduction in total consumption.
•
Almost half (48%) of the diesel fuel FedEx Ground
sold to service providers in FY 2022 was made up of
biodiesel blends.
•
Since November 2022, a small portion of FedEx-
owned linehaul trucks in the Netherlands have been
using renewable diesel fuel made from organic waste
materials.
•
In India, FedEx Express replaced 18 PUD diesel vans
with Compressed Natural Gas (CNG) in FY 2023.
•
In the United Arab Emirates, FedEx Express switched
from conventional diesel to biodiesel for 19 vehicles
in FY 2023.
Sustainable energy
Alongside its fleet electrification and alternative fuel
efforts, FedEx has introduced initiatives to reduce
greenhouse gas emissions through renewable energy
and efficiency projects at its facilities around the world.
•
29 global FedEx facilities generated on- and
off-site solar energy in FY 2022.
•
FedEx Express has received ISO 14001 certification
for all on-airport locations in the U.S.
•
In February 2023, FedEx Express opened a new
handling facility in Cork, Ireland that is LEED
silver rated.
•
In April 2023, FedEx Express launched a solar
installation project at its ground operations station in
Shunyi, Beijing. The 2,000-square-meter rooftop solar
panel system is expected to generate 360,000 kWh of
electricity annually, which would save more than 110
tons of standard coal and reduce over 350 tons of CO₂
emissions per year compared to conventional
coal-fired thermal power.
Supporting innovative solutions
Beyond making its own operational improvements, FedEx
is investing in emerging technologies that support a more
sustainable future through strategic philanthropy and
advocacy efforts.
•
FedEx is investing in carbon capture through its
support for the Yale Center for Natural Carbon
Capture. The company has pledged $100 million to
establish the Center and fund interdisciplinary research
to advance nature-based carbon removal solutions
that sequester and store carbon from the atmosphere.
•
FedEx is a founding member of Third Derivative, RMI’s
global climate technology accelerator. Third Derivative
provides start-ups access to expertise, capital, and
industry partners needed to bring climate-focused
technologies to market faster. Since launching in
2020, Third Derivative’s portfolio of over 150 startups
have collectively generated more than $1 billion of
investment from cleantech finance in a variety of
major emissions sectors, including buildings, industry,
electricity, transportation, carbon markets, and the
circular economy.
•
The Mobility and Accessibility Program (MAP), a
long-term collaboration between FedEx and World
Resources Institute (WRI) Ross Center for Sustainable
Cities, is transforming public transportation in Brazil,
China, India, and Mexico. Since 2010, MAP has impacted
more than 18 million people and avoided over 1
MTCO
2
e. FedEx has not only provided funding since
2010, but also provided technical expertise, service
experience, and marketing resources to the WRI team,
with more than 100 FedEx team members sharing
knowledge since 2012.
•
In FY 2022, FedEx joined TPG Rise Climate’s $7.3 billion
inaugural investor coalition fund, which is deploying
capital through growth-stage investments
in innovative climate solutions.
For more information on FedEx
sustainability efforts worldwide,
see the
2023 ESG Report.
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Endnotes:
Disclaimer
The information and opinions contained in this FedEx Global Economic Impact Report (the “Report”) are provided
as of May 31, 2023, the end of the FedEx 2023 fiscal year, unless otherwise noted, and are subject to change without
notice. None of FedEx or any of its subsidiaries or affiliates assume any responsibility or obligation to update or revise
any such statements, regardless of whether those statements are affected by the results of new information, future
events, or otherwise. This Report is intended to provide non-exhaustive, general information. This Report represents
current FedEx policy and intent and is not intended to, nor can it be relied upon, to create legal relations, rights, or
obligations. This Report contains and incorporates by reference certain information prepared by Dun & Bradstreet
(“D&B”) regarding the direct and indirect economic impacts of FedEx operations, as well as the performance of
economies generally. No representation, warranty, or undertaking, express or implied, is made and no responsibility
or liability is accepted by FedEx as to the fairness, accuracy, reasonableness, or completeness of such information
prepared by D&B. Certain statements in this Report, including those preceded by, followed by, or that include the
words “will,” “may,” “could,” “would,” “should,” “believes,” “expects,” “forecasts,” “anticipates,” “plans,” “estimates,”
“targets,” “projects,” “intends,” or similar expressions are “forward-looking” statements. Such forward-looking
statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially
from historical experience or from future results expressed or implied by such forward-looking statements. Potential
risks and uncertainties include, but are not limited to, our ability to achieve or demonstrate progress on our goal of
carbon-neutral operations by 2040 and other factors and uncertainties discussed in FedEx’s and its subsidiaries
press releases and FedEx’s filings with the Securities and Exchange Commission. Actual results may differ materially
from those contemplated (expressed or implied) by such forward-looking statements. Any such forward-looking
statements in this Report speak only as of the date of this Report, and FedEx does not undertake or assume any
obligation to update forward-looking statements. This Report sets out FedEx’s intended policy and actions in
respect of capital investments and other strategic initiatives. However, nothing in this Report is intended to modify
or add to any covenant or other contractual obligation undertaken by FedEx in connection with such strategic
initiatives. This Report does not create any legally enforceable obligations against FedEx. Therefore, it will not be an
event of default or breach of contractual obligations under the terms and conditions of any contract to which FedEx
is party if FedEx fails to adhere to the goals, projections, and initiatives set forth in this Report, including by failing
to fund or complete certain projects. In addition, it should be noted that all of the expected benefits as described in
this Report may not be achieved. Future developments could limit the ability to achieve some or all of the expected
benefits of these initiatives, including the funding and completion of certain projects.
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