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 year 2024 (FY 2024).1Produced with consulting from Dun & Bradstreet (NYSE: DNB), a leading provider of business data and analytics, the study highlights the "FedEx Effect" – the impact FedEx has on accelerating the flow of goods and ideas that drive economic growth in countries and regions.
"At FedEx, we have the vision of making supply chains smarter for everyone by leveraging data and advanced technology to better serve our customers and their clients, thereby expanding our reach and impact," said Raj Subramaniam, President and CEO of FedEx Corporation. The 'FedEx Effect' represents our unwavering commitment to excellence, economic growth, and the communities where we live and work.
The report reveals that FedEx contributed more than $85 billion in direct impact to the global economy in fiscal year 2024, accounting for approximately 0.1% of the world's total net economic output.2This activity reflects the scale of the FedEx network and the company's ongoing efforts to improve its innovative services that help businesses of all sizes connect with customers and strengthen their operations. The company has the world's largest transportation network, providing services to over 220 countries and territories. Furthermore, FedEx employs over 500,000 people across more than 5,000 facilities and handles an average of 16 million packages per day.
FedEx's contributions to global net economic output – including its revenues, wages, and capital expenditures – generate additional economic activity throughout its business network. This indirect impact activity helps to boost production growth across all sectors due to the company's relationships within and between sectors of the global economy. In the fiscal year 2024, FedEx indirectly contributed approximately US$ 39 billion to global net economic output.3, including its largest indirect contribution to the global transportation and storage sector4.
In Latin America and the Caribbean (LAC), in the fiscal year 2024, FedEx contributed 0.8% of the net economic output in the Transportation, Logistics, and Communication sector, and an indirect economic impact of US$ 1.2 billion for the region's economy.
"We are deeply committed to continuing to support 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. "Furthermore, we continue to improve our air, road, and logistics operations to connect South America's largest economy to the world. Our goal is always to strive for excellence in serving clients of all sizes, from small and medium-sized enterprises to large corporations, offering solutions for domestic and international transportation and ensuring the availability of highly qualified teams. We remain united in our mission to connect Brazilian businesses to opportunities, reduce our environmental footprint, and positively impact the economy," concludes the executive.
This impact is amplified through substantial investments by FedEx in infrastructure and sustainability, such as expanding its presence by opening its first FedEx Street Shipping Center unit in Rio de Janeiro, as well as focusing on security innovations through the use of electric vans equipped with AI in São Paulo to reduce the risk of cargo theft, for example.
The company's extensive delivery network and infrastructure across the region include land hubs, logistics centers, air cargo terminals, warehouses, collection and delivery stations, all operated by thousands of employees providing fast and efficient services to their customers. In Brazil, FedEx serves approximately 5,500 cities across the country, with a land fleet of over 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 enterprises, FedEx held its 7th edition of the FedEx Program for Micro and Small Businesses in the second half of 2023, with Equal Moda Inclusiva, a clothing manufacturing company that produces conventional and adapted pieces for people with various types of disabilities, winning first place. In the 2023 edition, over 2,200 entrepreneurs registered their companies to participate in the Program – a 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 introduced additional electric vehicles in Brazil and Chile and modernized its air fleet in Mexico, replacing older aircraft with new fuel-efficient planes. The company also purchases energy from renewable sources in various locations across Brazil and has installed solar panels at its units in Simões Filho, Joinville, Betim, Governador Valadares, and Petrolina. The electricity generated by FedEx's solar installations helped avoid 295 tons of CO2 emissions in the fiscal year 2023. Based on these energy efficiency improvements, FedEx plans to expand the use of solar panels to other facilities in Brazil.
FedEx also provides significant support to local communities across the region, including care activities and rapid response to emergencies and natural disasters, such as donating thousands of blankets made from the recycling of unused employee uniforms in Brazil. The initiative benefited institutions that support people in vulnerable social situations and animal protection.
In other countries, such as Chile, FedEx continued to increase its presence, 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 Clean Giro certification for land operations in the fiscal year 2024 – its fifth consecutive year. And in Mexico, FedEx provided aid after Hurricane Otis, transporting over 120 tons of food and essential items.
Key highlights from the FedEx Economic Impact Report include:
- Business:FedEx's ongoing support for trade policies that facilitate greater market access drives the company's purpose of connecting people and possibilities worldwide. According to a recent Morning Consult survey commissioned by FedEx, almost all U.S. business decision-makers interviewed agree that global trade stimulates economic growth, creates jobs and opportunities, and promotes innovation.
- Operational improvements:FedEx continued to improve its network in fiscal year 2024, mainly through the ongoing optimization of its land network within a single transportation system. Other multi-year investments continued, including the completion of major facilities such as a hub at Dubai World Central Airport and a secondary classification unit at Memphis International Airport. The company also added advanced screening equipment to the existing facilities across its network, as well as additional storage capacity.
- Sustainability:The company continues to invest in renewable energy to power its facilities, electrification of its collection and delivery fleet, and research on carbon sequestration to promote natural carbon capture solutions for adoption across the transportation sector.In the 2024 fiscal year, 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 expand their global reach, supporting local job creation and economic activity. In addition to its specific portfolio solutions for SMEs, the company connects clients with its specialists and companies from other sectors for focused discussions on solutions that can add value to their businesses through a platform called 'SME Connect'.
- Supply chain:In 2023, 90% of the suppliers contracted by FedEx were small businesses. The company's expenses with suppliers during this 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 shipping services worldwide. In the fiscal year 2024, the company's charitable contributions totaled over $55 million to its direct partnerships with NGOs and nonprofit organizations.
Read the full FedEx Global Economic Impact Report for FY2024 and explore the FedEx Effect on communities and regions around the world atfedex.com/economicimpact.