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FedEx contributed more than $85 billion directly to the global economy in fiscal year 2024, accounting for about 0.1% of the world’s total net economic output
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Contributions also accounted for approximately 0.9% of overall net economic output in the transportation, storage, and communications sector in FY 2024
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Indirect contributions to the total worldwide net economic output reached an estimated $39 billion in FY 2024, a 10% increase year-on-year
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FedEx indirectly contributed about $1.7 billion to the Asia Pacific economy in FY 2024
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Directly contribution in Asia Pacific’s transportation, storage, and communications sector came to about 0.2% net economic output
FedEx Corp. contributed more than $85 billion directly to the global economy in fiscal year 2024 (June 2023-May 2024), accounting for approximately 0.1% of the world’s total net economic output, according to the company’s latest annual economic impact report.
Contributions also accounted for approximately 0.9% of overall net economic output in the transportation, storage, and communications sector during the same period, according to the report.
FedEx said this reflects the scale of its network and its efforts to enhance services that help businesses of all sizes connect with customers and strengthen their operations.
The transportation and logistics company currently provides service to more than 220 countries and territories, employing more than 500,000 people across more than 5,000 facilities and moves an average of 16 million packages per day.
FedEx’s indirect contributions to total worldwide net economic output, meanwhile, reached an estimated $39 billion in FY 2024, a 10% increase year-on-year.
The report said FedEx made the largest indirect contribution to the global transportation, storage, and communications sector with an estimated $20.4 billion for FY 2024. It also indirectly contributed an estimated $10.1 billion to the global manufacturing sector.
Produced in consultation with Dun & Bradstreet, the report quantifies the “FedEx Effect”—the impact FedEx has on accelerating the flow of goods and ideas that generate economic growth across countries and regions. It measures a range of factors, including the impact of the company’s revenues, capital expenditures, and spending on wages, as well as the ripple effects generated by our core services.
“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,” FedEx president and chief executive officer Raj Subramaniam said in a statement.
“The ‘FedEx Effect’ represents our relentless commitment to excellence, economic growth, and the communities where we live and work,” he added.
For the Asia Pacific (APAC) region in particular, the report said FedEx directly contributed an estimated 0.2% to net economic output in transportation, storage, and communications sector. FedEx also indirectly contributed an estimated $1.7 billion to the region’s economy in FY 2024.
FedEx noted that APAC 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.
“We recognize APAC’s pivotal role and contribution to the global economy and are committed to driving its growth,” FedEx APAC president Kawal Preet said.
“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,” Preet added.
According to the report, FedEx “plays a critical role in facilitating commerce across the region through an air and ground network that spans 43 APAC countries and territories.”
The company operates its Asia Pacific air hub at Baiyun International Airport in Guangzhou, China and subregional hubs at Kansai International Airport in Osaka, Japan, Changi International in Singapore, and Pudong International Airport in Shanghai, China.
In FY 2024, FedEx also continued to modernize and expand its operations in APAC with developments such as an expansion of the company’s international gateway at Shenzhen Baoan International Airport in China; a new regional headquarters in Singapore; and the announcement of expansion plans for the FedEx transshipment center at the Farglory Air Cargo Park at Taiwan’s Taoyuan International Airport.
The company also 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.
Moreover, in 2023, 68% of FedEx supply chain spending in APAC went to small- and medium-sized business market, contributing to the number of small business jobs created in the region.
FedEx also 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 non-governmental organizations and nonprofits.
