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). leading provider of business decision data and analytics, the report highlights the “FedEx Effect” – the impact FedEx has on accelerating the flow of goods and ideas that drive economic growth across countries and regions.
“At 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, expanding our reach and impact,” said Raj Subramaniam, president and CEO of FedEx Corporation. “The 'FedEx Effect' represents our relentless 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 . This activity reflects the scale of the FedEx network and the company's ongoing efforts to enhance its innovative services that help businesses of all sizes connect with customers and strengthen their operations. The company has the world's most extensive transportation network, providing service to more than 220 countries and territories. Additionally, FedEx employs more than 500,000 people across more than 5,000 locations and moves an average of 16 million packages per day.
FedEx's contributions to global net economic output—including its revenues, wages, and capital expenditures—create additional economic activity throughout its business network. This indirect impact activity helps drive increased output across all sectors due to the company's relationships within and across sectors of the global economy. In fiscal year 2024, FedEx indirectly contributed approximately $39 billion to global net economic output , including its largest indirect contribution to the global transportation and warehousing sector .
In Latin America and the Caribbean (LAC), in fiscal year 2024, FedEx contributed 0.8% of the net economic output in the Transportation, Logistics and Communications sector, and an indirect economic impact of US$1.2 billion to 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 to always strive for excellence in serving customers of all sizes, from small and medium-sized businesses to large corporations, offering solutions for national 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 FedEx's substantial investments in infrastructure and sustainability, such as expanding its footprint through the opening of its first street-level FedEx Shipping Center in Rio de Janeiro, as well as focusing on security innovations, such as the use of AI-equipped electric vans in São Paulo to reduce the risk of cargo theft.
The company's extensive delivery network and infrastructure across the region includes ground hubs, logistics centers, air cargo terminals, warehouses, and pickup and delivery stations, all staffed by thousands of employees who provide fast and efficient service to its customers. In Brazil, FedEx serves approximately 5,500 cities nationwide, with a ground fleet of over 2,400 owned vehicles and 50 branches—including the two largest FedEx logistics centers in Latin America, in Cajamar, São Paulo, and Serra, Espírito Santo.
With a business structured to serve businesses of all sizes, including small and medium-sized enterprises, FedEx held its 7th edition of the FedEx Micro and Small Business Program in the second half of 2023. Equal Moda Inclusiva, a clothing company that produces both conventional and adapted clothing for people with various disabilities, took first place. In the 2023 edition, more than 2,200 entrepreneurs registered their companies to participate in the Program – a 49% increase over 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, fuel-efficient aircraft. The company also purchases energy from renewable sources in several locations in Brazil and has installed solar panels at its facilities in Simões Filho, Joinville, Betim, Governador Valadares, and Petrolina. Electricity generated by FedEx solar installations helped avoid 295 tons of CO2 emissions in fiscal year 2023. Building 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 throughout the region, including care and rapid response activities to emergencies and natural disasters, such as the donation of thousands of blankets made from recycled employee uniforms in Brazil. This initiative benefited institutions that support people in socially vulnerable situations and animal protection.
In other countries, such as Chile, FedEx continued to grow its presence, expanding its distribution center in Pudahuel, Santiago—the largest e-commerce-focused facility in South America. Due to its sustainability efforts in Chile, FedEx achieved its Giro Limpio ground operations certification in fiscal year 2024—its fifth consecutive year. And in Mexico, FedEx provided relief after Hurricane Otis, transporting more than 120 tons of food and essential items.
Key highlights from the FedEx Economic Impact Report include:
- Trade : FedEx's continued support for trade policies that facilitate greater market access advances the company's purpose of connecting 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 ongoing optimization of its ground network into a single transportation system. Other multi-year investments continued, including the completion of key facilities such as a hub at Dubai World Hub Airport and a secondary sorting facility at Memphis International Airport. The company also added advanced sorting equipment to existing facilities across its network, as well as additional warehousing capacity.
- Sustainability : The company continues to invest in renewable energy to power its facilities, electrification of its pickup and delivery fleet, and carbon sequestration research to promote natural carbon capture solutions for adoption across the transportation sector. 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 Business : FedEx helps small and medium-sized businesses (SMBs) accelerate their growth and expand their global reach, supporting local job creation and economic activity. In addition to its portfolio of solutions specifically for SMBs, the company connects customers with its experts 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 : By 2023, 90% of FedEx's suppliers were small businesses. The company's spending on suppliers during this period supported approximately 400,000 small business jobs worldwide.
- Giving : FedEx supports local communities through FedEx Cares, which promotes donations, employee volunteer efforts, and in-kind shipping services worldwide. In fiscal 2024, the company's charitable contributions totaled more than $55 million through its direct partnerships with NGOs and nonprofits.
Read the full FedEx Global Economic Impact Report for FY2024 and explore the FedEx Effect in communities and regions around the world at fedex.com/economicimpact .
