Singapore, October 25, 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, with rapid growth in major economies like China and Japan and developing markets such as Vietnam, Thailand, and Indonesia. 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.
“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.”
The FedEx economic footprint in the region 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. As countries like Vietnam emerge as central global production hubs for technology equipment, semiconductors, textiles, and more, FedEx has strengthened connections within the region, for instance by adding four new weekly flights from Ho Chi Minh City to the FedEx Asia Pacific Hub in Guangzhou, China.
- Operational enhancements: FedEx continues to grow its footprint in the APAC region and has established new regional headquarters in Singapore. FedEx also upgraded the Shenzhen International Gateway to double its package sorting capacity. It 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. Additionally, we have plans to expand the FedEx transshipment center at the Farglory Air Cargo Park at Taiwan’s Taoyuan International Airport. These critical hubs 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, electrification of its pickup and delivery fleet, and carbon sequestration research to advance natural carbon capture solutions for adoption across the transportation industry. In FY 2024, FedEx opened new energy-efficient facilities in Singapore, China, and Australia, and added five commercial electric tricycle to its PUD fleet in Taiwan. The company also made history by completing the first delivery of a cross-border package via an EV from Malaysia to Singapore. The historic 252-mile journey avoided approximately 220 pounds of tailpipe CO2 emissions compared to making the same journey with a diesel-powered van and was recognized by the Malaysian Book of Records for “First Malaysian Zero Emission Cross-Border Delivery”.
- Supply chain: FedEx supplier spending makes a significant contribution to the small- and medium-sized business (SAM) market. In calendar year 2023, 68% of FedEx supply chain spending in APAC went to SAMs, contributing to the number of small business jobs created in the region.
- Small businesses: FedEx helps small- and medium-sized businesses (SAMs) accelerate their growth and extend their global reach, supporting local job creation and economic activity. In addition to its SAM-specific portfolio solutions, the company supports the SAM community, through its Small Business Grant Program to recognize innovative entrepreneurs and provide funding to help accelerate their growth. In APAC, four companies from Indonesia, Malaysia, Philippines, and Singapore shared a total prize pool of $69,000. The $30,000 grand prize winner was Lucence, a precision oncology start-up from Singapore that is developing non-invasive tests that aim to accurately diagnose cancer.
- 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 FY 2024, the company’s charitable contributions totaled to more than $55 million to its direct partnerships with NGOs and nonprofits. In APAC, this involved donating retired uniforms to local organizations in China, supporting education costs for women enrolled in engineering and science courses at the Polytechnic University of the Philippines, donating computers and software programs to students in Jakarta, and bicycle repair stations in the Philippines. The company also supported youth entrepreneurship through its regional Junior Achievement (JA) program and volunteered to support programs including tree planting in China and Singapore, urban gardens in Malaysia, foodbank and litter collection in Australia and a library program in China.
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).