MANILA, Philippines – A recent report from FedEx Corp. details how the company’s comprehensive network and strategic investments have boosted economic growth across the Asia Pacific (APAC) region, contributing approximately $1.7 billion in indirect economic benefits for FY 2024. Developed in collaboration with business intelligence firm Dun & Bradstreet, the report highlights the “FedEx Effect,” a term describing how the global logistics company is advancing economies by optimizing supply chains with advanced technology and data-driven decision-making.
The report shows that FedEx directly contributed more than $85 billion to the global economy in FY 2024, amounting to about 0.1% of the world’s economic output. Through extensive operations across more than 220 countries, FedEx connects businesses of all sizes to international markets, facilitating rapid and efficient trade with its air and ground logistics services.
Within APAC, FedEx is fostering economic activity in 43 countries through innovations like expanded shipping routes, enhanced hub capacities, and sustainable logistics solutions. Examples include four new weekly flights linking Ho Chi Minh City to the FedEx Asia Pacific Hub in Guangzhou, and the Shenzhen International Gateway upgrade, which doubled FedEx’s regional package sorting capacity. The company also aims to empower the small- and medium-sized business (SMB) sector with initiatives such as its Small Business Grant Program, which awarded $69,000 in grants to APAC entrepreneurs in FY 2024.
Further, FedEx is committed to eco-friendly practices, as demonstrated by the addition of energy-efficient facilities in Singapore, China, and Australia, and deploying electric tricycles for local deliveries in Taiwan. FedEx also completed a record-breaking zero-emission delivery between Malaysia and Singapore, covering 252 miles and achieving a 220-pound reduction in CO2 emissions compared to diesel vehicles.
FedEx’s charitable contributions through FedEx Cares included education support, equipment donations, and volunteer initiatives, totaling over $55 million in direct partnerships worldwide in FY 2024. FedEx’s contributions in APAC alone included efforts in education, environmental conservation, and youth entrepreneurship, supporting long-term regional economic growth and community development.
FAQs:
Q: What is the ‘FedEx Effect’?
A: The ‘FedEx Effect’ refers to the economic impact FedEx has on communities by accelerating trade, technology, and business growth through its extensive network.
Q: How much did FedEx contribute to the Asia-Pacific economy in FY 2024?
A: FedEx contributed an estimated $1.7 billion indirectly to the Asia-Pacific economy in FY 2024.
Q: How does FedEx support small- and medium-sized businesses (SAMs)?
A: FedEx supports SAMs through supply chain spending, grant programs, and business solutions that help them scale and access global markets.
Q: What sustainability initiatives is FedEx undertaking in APAC?
A: FedEx is investing in renewable energy, electrifying its fleet, and implementing zero-emission deliveries to reduce its environmental footprint in APAC.
Q: How many countries does FedEx operate in within APAC?
A: FedEx operates in 43 APAC countries and territories.
Q: Where can I read the full report?
A: The full FY 2024 FedEx Global Economic Impact Report is available on the FedEx website.