Shanghai, China, November 20, 2023 – FedEx Corp. (NYSE:FDX) released its annual economic impact report, analyzing the company’s worldwide network and role in fueling innovation during its 2023 fiscal year (FY 2023).1Produced in consultation with Dun & Bradstreet (NYSE: DNB), a leading provider of business decisioning data and analytics, the study demonstrates the positive impact FedEx has on individuals and communities around the globe — otherwise known as the ‘FedEx Effect.’
“FedEx has helped shape global supply chains and the e-commerce revolution over five decades by transforming the way businesses exchange goods, services, and ideas — all while continuously exceeding the evolving needs of our customers,” said Raj Subramaniam, President and CEO, FedEx Corporation. “This report underscores our significant contributions to the economy and dedication to making a positive difference in the communities where we operate.”
The report reveals that FedEx contributed more than $80 billion in direct impact to the global economy in FY 2023, despite recent economic pressures. This activity reflects the scale of the network FedEx has developed and the company’s ongoing efforts to enhance its innovative services that help businesses of all sizes connect with customers and strengthen their operations.
AMEA impact
FedEx Express serves more than 100 markets across the AMEA region, including China. The study found that with its extensive network, FedEx Express contributed 0.3% of net economic output in the Transportation, Storage, and Communications sector2 in the region during FY 2023. Across all sectors of the AMEA economy, FedEx Express contributed 0.02% of total net economic output, which grew approximately 6% in FY 2023 to $44 trillion.
The company’s impact also included $2.7 billion in indirect contributions to the regional economy in FY 2023. Among specific industries in AMEA, FedEx Express indirectly contributed an estimated $1 billion to the critical $9 trillion Manufacturing sector.3 The company’s indirect contribution to the Transportation, Storage, and Communications sector4 was estimated as $772 million.
“The AMEA region has an increasingly prominent position in the global economy. We are committed to supporting the growth we are seeing here by investing in our facilities and network. Both directly and indirectly, our work supports a growing number of jobs in the wider economy, and we want that to continue,” said Kawal Preet, President, Asia Pacific, Middle East, and Africa region, FedEx Express. “Our focus is on our customers and creating greater access to the possibilities that global trade brings. We believe that creating an even more connected and sustainable future will strengthen the FedEx Effect for team members, customers, suppliers, and communities across the region.”
In CY 2022, FedEx spent $3.7 billion with suppliers in the AMEA region, making significant contributions to the small- and medium-sized enterprise market. Additionally, the company’s expansion of new facilities in the region has greatly enhanced its sorting and storage capabilities, while digitalization initiatives and innovation empower its smart logistics network and value in the global supply chain ecosystem.
China impact
FedEx Express operates its Asia Pacific air hub at Baiyun International Airport in Guangzhou, China and a sub-regional hub at Pudong International Airport in Shanghai, China. These operations play a critical role in enabling connectivity to and from the AMEA region.
“For almost four decades of market operations, FedEx has been committed to connecting China with the global market. We are pleased to see our endeavors to enhance network and capacity have been successful as we advance cooperation with local markets,” said Eddy Chan, Senior Vice President of FedEx Express and President of FedEx China. “The results highlighted in this year’s Economic Impact Report inspire us to spearhead infrastructure, customer service, and innovation, supporting the future development of China’s foreign trade and growth of the global economy.”
The company’s economic footprint in the market continues to grow.
- In July 2022, FedEx Express announced plans to upgrade its Guangzhou gateway by establishing a new FedEx South China Operations Center in Guangzhou. The new facility will cover an area of more than 41,000 square meters — more than double the size of the current Guangzhou gateway.
- 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 and connect customers in Guangzhou and southern China more effectively to global markets.
- 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.
Giving and sustainability
The report reveals that FedEx donated $58.6 million globally in FY 2023 to charities and local non-profits in the communities where its team members live and work. In AMEA, this includes environmental programs, childhood education, entrepreneurship, and healthcare initiatives to help improve lives. In April 2023, more than 1,000 FedEx volunteers and their families across 22 AMEA markets participated in the company’s 50 days of Caring initiative. This included a variety of sustainability and environmental-protection activities, including tree plantings, beach and park clean-ups, and hosting educational seminars on eco-living/eating, waste segregation, road safety, and sustainable logistics.
FedEx has also made significant contributions in the China market with its 11 corporate social responsibility (CSR) programs, focused on children’s education and wellbeing, as well as sustainability. In FY 2023, the FedEx Library Program established a reading room or reading corners for nine rural elementary schools, benefiting over 2,300 children and 120 teachers, and donated 770 books to another 10 rural schools and 1,500 students. The company also launched the AnQ Awakening Cloud Classroom in 2020, teaching children aged three to nine knowledge on health, safety, and carbon neutrality. This year, the program celebrated the success of its special event. FedEx has also echoed China’s vision of sustainable development by supporting tree-planting initiatives in cities like Guangzhou and Beijing. The CSR programs inspired a total of 446 volunteers to participate in FY 2023, including FedEx employees and their families, as well as customers and university students.
FedEx is committed to connecting the world responsibly, through its stated goal of achieving carbon-neutral operations by 2040 and pursuit of investments in renewable energy to power its operations. For example, FedEx Express launched of a solar installation project in April 2023 at its ground operations station in Beijing. The rooftop solar panel system covers 2,000 m² and generates 360,000 kWh of electricity annually. This project is estimated to save over 110 tons of standard coal and reduce over 350 tons of CO₂ emissions per year, compared to conventional coal-fired thermal power. The power generated supports the facility’s daily operational needs, while some power is fed into the national grid.
FedEx celebrated 50 years of operations on April 17, 2023. The company has the most extensive transportation network in the world, providing services to more than 220 countries and territories. Additionally, FedEx employs over 500,000 people across more than 5,000 facilities and moves approximately 14.5 million packages per day.
Read the full FY 2023 FedEx Economic Impact Report and further explore the FedEx Effect across China and the broader AMEA region at fedex.com/economicimpact.
About FedEx Corp.
FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce, and business services. With annual revenue of nearly $90 billion, the company offers integrated business solutions through operating companies competing collectively, operating collaboratively, and innovating digitally as one FedEx. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its more than 500,000 employees to remain focused on safety, the highest ethical and professional standards and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. To learn more, please visit fedex.com/about.
1 Fiscal year (FY) 2023 is defined as June 1, 2022-May 31, 2023.
2 As defined by the United Nations Conference on Trade and Development (UNCTAD).
3 As defined by UNCTAD.
4 As defined by UNCTAD.