Shanghai, China, November 9, 2024 – FedEx Corp. (NYSE: FDX) today released its annual economic impact report, analyzing the company’s worldwide network and role in building prosperity in local communities during its 2024 fiscal year (FY 2024)[1]. Produced in consultation with Dun & Bradstreet (NYSE: DNB), a leading provider of business decisioning data and analytics, the study underscores the ‘FedEx Effect’—the impact FedEx has on accelerating the flow of goods and ideas that generate 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, thereby extending our reach and impact,” said Raj Subramaniam, president and CEO, 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 FY 2024, accounting for approximately 0.1% of the world’s total net economic output[2]. 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 most extensive transportation network in the world, providing service to more than 220 countries and territories. Additionally, FedEx employs more than 500,000 people across more than 5,000 facilities and moves an average of 16 million packages per day.
APAC impact
The Asia Pacific (APAC) region continues to emerge as a hub of economic opportunity. FedEx is critical in facilitating regional commerce through its growing air, and ground network spanning 43 APAC countries and territories. In FY 2024, FedEx directly contributed an estimated 0.2% to net economic output in APAC’s Transportation, Storage, and Communications sector. FedEx also indirectly contributed an estimated $1.7 billion to the region’s economy in FY 2024.
“At FedEx, we recognize APAC’s pivotal role and contribution to the global economy and are committed to driving its growth,” said Kawal Preet, president of Asia Pacific, FedEx. “By investing strategically in infrastructure and enhancing connectivity within the region and globally, we are empowering businesses to unlock new growth opportunities while positioning APAC as a hub for international investment. We remain steadfast in expanding access to global trade, fueling economic growth, and creating long-term sustainable value for communities, customers, and businesses across the region.”
China impact
As one of the major economies in the APAC region with rapid growth, China plays a critical role in FedEx’s global strategy. Since its entry into the market in 1984, FedEx has continued to invest in new infrastructure and service enhancements to support China’s rapidly growing economy and to connect the country to international markets. Now, FedEx has set up 103 branches across China with over 3,000 vehicles. It operates more than 300 international flights in China per week. With the Asia Pacific Hub at Guangzhou Baiyun International Airport and its gateway operations in Beijing, Shanghai, Guangzhou, and Shenzhen, FedEx connects its customers to its global network and provides China customers with fast and reliable international and domestic express service.
“This year marks the 40th anniversary of FedEx operations in China. We are proud that our long-term and dedicated efforts in this market have yielded positive results, allowing us to connect our customers in China to the world in a more flexible, efficient and intelligent way,” said Poh-Yian Koh, senior vice president of FedEx and president of FedEx China. “China’s significance to global economic development and to the FedEx network cannot be overstated. FedEx will continue investing in the country to support the sustainable growth of China’s foreign trade and the prosperity of the global economy.”
The FedEx economic footprint in China continues to grow.
· Trade: FedEx’s continued support of trade policies that facilitate greater market access advances the company’s purpose of connecting people and possibilities across the globe. The company has strengthened connections between China and the rest of the world, for instance by adding four new weekly flights from Ho Chi Minh City to the FedEx Asia Pacific Hub in Guangzhou. In addition, FedEx also launched a new flight from Qingdao in Shandong Province to the U.S. via Osaka, Japan, providing a one-day improvement in transit time for outbound customers in Qingdao and Shandong Province.
· Operational enhancements: FedEx continues to grow its footprint in China and has opened a new and expanded China headquarters office in Shanghai. It also upgraded the Shenzhen International Gateway to double its package sorting capacity and broke ground on a new South China Operations Center in Guangzhou that will be able to sort up to 25,000 packages and documents per hour – three times the current FedEx Guangzhou Gateway capacity. These critical facilities are helping meet the growing demand for efficient, large-scale shipping solutions.
· Sustainability: The company continues to invest in renewable energy to power its facilities and electrification of its pickup and delivery fleet. Since first deploying EVs in 2018, FedEx has electrified 20% of its PUD fleet in China. In FY24, it launched a “GoGreen” contest involving more than 11,000 team members to save water, electricity, fuel, and paper in day-to-day operations. The company also collaborated with local organizations to transform retired uniforms from employees into products including crossbody bags, fanny packs, and low-carbon alternative fuels.
· Small businesses: FedEx helps small- and medium-sized businesses (SAMs) accelerate their growth and extend their global reach. The company supports the SAM community through several new and improved services including the enhanced International Priority® (IP) service for exporters, which helps reduce transit times to major international markets; and FedEx Ship ManagerTM Lite (FSM Lite), a mobile solution that creates a faster and more convenient paperless shipping experience. The company also launched the Online Import Customs Declaration Tool, enabling customers to electronically submit trade data on low and high-value shipments.
· Giving: FedEx supports the local communities it serves through FedEx Cares, which promotes charitable giving, employee volunteer efforts, and in-kind shipping services around the world. In November 2023, FedEx transported three giant pandas — Mei Xiang, Tian Tian, and their three-year-old cub Xiao Qi Ji — from Washington, D.C. to Chengdu, China. The company also volunteered to support programs including tree planting and the library program in this market.
Read the full FY 2024 FedEx Global Economic Impact Report and explore the FedEx Effect in communities and regions around the world at FedEx | Economic Impact Report.
[1] Fiscal year (FY) 2024 is defined as June 1, 2023-May 31, 2024.
[2] The world total net economic output for FY24 is estimated based on overall and industry value added sourced from UNCTAD (United Nations Conference on Trade and Development) and using economic growth projections published by the IMF (International Monetary Fund).