2014 Annual Report

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The strength of our global networks.

With 95 percent of the world’s consumers living outside the United States, FedEx has been investing in countries where business is growing. FY14 was no exception. Strategic acquisitions, new hubs and enhanced services strengthen the link between emerging economies and the global marketplace. As a result, customers have better access to opportunities than ever, and local economies are enjoying strong growth.

Momentum in Mexico

In April, FedEx opened the most advanced FedEx Express distribution center in Latin America, just outside Mexico City. As the centerpiece of our domestic operations in Mexico, the hub is already infusing vitality into the country’s economy by driving trade and creating jobs. A greatly expanded range of solutions and more than 800 shipping locations across Mexico give customers more direct access to markets within their country and faster access to opportunities worldwide.

FedEx now enjoys a strong position in Mexico, thanks to our recent integration of MultiPack. The 2011 acquisition signaled our commitment to the fast-growing region where daily two-way trade between Mexico and the U.S. alone totals $1.35 billion.1 As a U.S. trading partner, Mexico ranks as the third largest, accounting for 13.5 percent of total trade.2

“We are witnessing a key moment in the growth of FedEx in Latin America,” said Juan N. Cento, Regional President of FedEx Express, Latin America and the Caribbean. The new Mexico hub will accelerate Latin American domestic revenues, which are already growing substantially.

Open borders boost trade

Removing barriers to trade has propelled intraregional trade flows since the North American Free Trade Agreement (NAFTA) was signed two decades ago. In October 2013, U.S. trade with NAFTA partners Canada and Mexico was $103.1 billion, up 4.5 percent from the previous year and exceeding $100 billion per month for the first time, according to Bureau of Transportation Statistics. For perspective, the U.S. trades more in goods and services with Mexico and Canada than it does with Japan, South Korea, Brazil, Russia, India and China combined.

As the near-shoring trend continues, many Latin American countries, including Mexico, stand to benefit from a growing manufacturing industry. Companies also have the opportunity to market their products to the growing consuming class within Mexico by moving their manufacturing closer to U.S. markets.

Focused on growing markets

FedEx strategy to provide domestic service in Mexico is the same driving force behind acquisitions of domestic transportation companies in other key markets around the world, including the United Kingdom, Hungary, India, China, Poland, France, Brazil and Southern Africa. The growth plan is working — international domestic revenue has more than doubled from $653 million in FY11 to about $1.4 billion in FY14.

FedEx is expanding services in key high-growth countries. The chart below reflects projected population growth from 2010 to 2030.

Grow globally, operate locally.

A few years ago, FedEx participated in a $30 billion global export express market. As the map below shows, we’ve worked hard in the last year to expand our portfolio to include domestic services in international markets, new hubs and freight forwarding locations. Investments have now positioned us to pursue a much larger logistics and transportation marketplace worth $300 billion.

Click on map to learn more.

Click on areas of the map above to learn more.

Emerging Markets

In the backwoods of Maine, fabric from India and Nepal is transformed into yarn prized by customers worldwide.

Chairman FedEx Fred Smith

Decisive actions. Superior returns.

Chairman, President and CEO Fred Smith discusses how FedEx acted decisively to boost shareowner value in FY14.

Read the Chairman’s letter

Strength of our Porfolio

The strength of our portfolio.

Discover how all three FedEx transportation networks power Allen Edmonds’ global supply chain.

Read the full story