FedEx Corp. today released its annual economic impact report, analyzing the company's global network and its role in building prosperity in local communities during fiscal 2024 (FY 2024).1 Produced with consulting from Dun & Bradstreet (NYSE: DNB), a leading provider of data and business decision analysis, the study underscores the impact FedEx and ACHR has on accelerating the flow of goods and ideas that drive economic growth in countries and regions.
“In FedEx, we have a vision to make supply chains smarter for everyone by leveraging advanced data and technology to better serve our customers and their customers, thereby extending our reach and impact”, said Raj Subramaniam, President and CEO of FedEx Corporation.“The FedEx Effect of the’s our relentless commitment to excellence, economic growth and the communities where we live and work.”
The report reveals that FedEx contributed more than US$ 85 billion in direct impact to the global economy in fiscal year 2024, accounting for approximately 0.1% of the world's total net economic output2. This activity reflects the scale of the FedEx network and the company's ongoing efforts to enhance its innovative services that help companies of all sizes connect with customers and strengthen their operations.The company has the most extensive transportation network in the world, providing services to more than 220 countries and territories. In addition, FedEx employs more than 500,000 people in more than 5,000 units and handles an average of 16 million packages per day.
FedEx contributions to global net economic output including its revenues, wages and capital expenditures create additional economic activity across its business network.This indirect impact activity helps drive output growth across all sectors due to the company's relationships within and across sectors of the global economy.In fiscal year 2024, FedEx indirectly contributed about US$ 39 billion to global net economic output3, including its largest indirect contribution to the global transport and storage sector4.
In Latin America and the Caribbean (LAC), in fiscal year 2024, FedEx contributed 0.8% of net economic output in the Transportation, Logistics and Communications sector, and an indirect economic impact of US$ 1.2 billion to the economy of the region.
“We are deeply committed to continue supporting economic growth and sustainability through our operations.In Brazil, our investments in infrastructure and people demonstrate this”, says Camila Lima, vice president of Operations in Brazil. “In addition, we continue to improve our air, road and logistics operations to connect the largest economy in South America to the world. Our goal is always to seek excellence in serving customers of all sizes, from small and medium-sized companies to large corporations, offering solutions for national and international transportation and ensuring the availability of highly qualified teams.
This impact is amplified through substantial FedEx investments in infrastructure and sustainability, such as expanding its footprint by opening its first FedEx Street Shipping Center facility in Rio de Janeiro, and focusing on safety innovations through the use of AI-equipped electric vans in Sao Paulo to reduce the risk of cargo theft, for example.
The company's extensive network and delivery infrastructure throughout the region includes ground hubs, logistics centers, air cargo terminals, warehouses, collection and delivery stations, all operated by thousands of employees who provide fast and efficient services to its customers. In Brazil, FedEx serves approximately 5,500 cities nationwide, with a ground fleet of more than 2,400 owned vehicles and 50 branches including the two largest FedEx logistics centers in Latin America, in Cajamar (SP) and Serra (ES).
With a business structured to serve companies of all sizes, including small and medium-sized, FedEx held its 7th edition of the FedEx Program for Micro and Small Companies in the second half of 2023, which had Equal Moda Inclusive, a clothing manufacturing company that produces conventional and adapted parts for people with various types of disabilities, winning the first place. In the 2023 edition, more than 2,200 entrepreneurs enrolled their companies to participate in the Program 49% increase compared to the previous year.
The company's efforts in Latin America also have positive environmental and social impacts, promoting resilience and sustainable growth throughout the region. FedEx has introduced additional electric vehicles in Brazil and Chile and modernized its air fleet in Mexico, replacing older aircraft with new low-fuel aircraft. The company also buys energy from renewable sources in several locations in Brazil and installed solar panels at its units in Simoes Filho, Joinville, Betim, Governador Valadares and Petrolina. The electricity generated by FedEx solar installations helped to avoid 295 tons of solar CO2 emissions in the fiscal year 2023.
FedEx also provides significant support to local communities across the region, including care and rapid response activities to emergencies and natural disasters, such as donating thousands of blankets made from recycling of out-of-use employee uniforms in Brazil.
In other countries, such as Chile, FedEx continued to increase its presence by expanding the distribution center in Pudahuel, Santiago, the largest e-commerce-focused facility in South America. Due to its sustainable efforts in Chile, FedEx obtained its Giro Limpio certification of ground operations in fiscal year 2024 2024 2nd year in a row. And in Mexico, FedEx provided aid after Hurricane Otis, carrying more than 120 tons of food and essential items.
Key highlights of the FedEx Economic Impact Report include:
- Trade: fedex's continued support for trade policies that facilitate greater market access drives the company's purpose to connect people and possibilities around the world.According to a recent Morning Consult survey commissioned by FedEx, nearly all U. S. business decision makers surveyed agree that global trade stimulates economic growth, creates jobs and opportunities, and fosters innovation.
- Operational improvements: fedex continued to improve its network in fiscal 2024, primarily through the continuous optimization of its terrestrial network into a single transportation system. Other multi-year investments continued, including the completion of key facilities such as a hub at Dubai World Central Airport and a secondary classification unit at Memphis International Airport.
- Sustainability: the company continues to invest in renewable energy to power its facilities, electrification of its collection and delivery fleet, and carbon sequestration research to promote natural carbon capture solutions for adoption across the transportation industry.In fiscal year 2024, FedEx added electric vehicles (EVs), including zero-emission EVs and motorcycles in Brazil and dozens of EVs in new markets such as Canada, Chile, Spain, the United Kingdom, the Netherlands, and the United Arab Emirates.
- Small businesses: fedex helps small and medium-sized enterprises (SMEs) accelerate their growth and extend their global reach by supporting local job creation and economic activity.In addition to its SME-specific portfolio solutions, the company connects customers with its experts and companies from other sectors for discussions focused on solutions that can add value to their businesses through a platform called 'SSME Connect’.
- Supply chain: in 2023, 90% of the suppliers FedEx hired were small businesses. The company's spending on suppliers during that period supported approximately 400,000 jobs in small businesses worldwide.
- Donation: fedex supports local communities through FedEx Cares, which promotes donations, employee volunteer efforts, and in-kind remittance services around the world.In fiscal 2024, the company's charitable contributions totaled more than US$ 55 million for its direct partnerships with NGOs and nonprofits.
Read the full FedEx Global Economic Impact Report for fiscal year 2024 and explore the FedEx Effect in communities and regions around the world on fedex.com/economicimpact.
