FedEx Corporation (IATA: FX; ICAO: FDX) is an American company and airline specializing in the international transportation of cargo, based in Memphis, Tennessee. Its name is the syllabic abbreviation of Federal Express, a name it officially used from 1973 to 2000.
| Creation | 1971 |
|---|---|
| Founders | Frederick W. Smith |
| Key figures | David J. Bronczek |
| Legal form | Delaware Society |
| Action | New York Stock Exchange (FDX) |
| Slogan | The World On Time |
| Head office | Memphis, Tennessee United States |
| Direction | Raj Subramaniam, CEO |
| Principals | Frederick W. Smith |
| activity | |
| Products | Intentionally |
| Parent company | FedEx Corporation |
| Subsidiaries | TNT Express |
| Number of employees | 600 000 (2022) |
| Website | http://www.fedex.com |
| Capitalization | $59.289 billion as of July 2022 |
| Own Funds | US$16,073,000,000 (2017) |
| Turnover | $84 billion in 2021 |
| Accounting balance sheet | US$48,552,000,000 (2017) |
| Net income | $540 million in 2018 |
Table of Contents
History
Federal Express was founded in 1971 by Frederick W. Smith. Its first fleet consisted of 11 and then 33 Dassault Aviation Falcon 20s adapted to the transport of goods with an additional cargo door. These aircraft were replaced in 1982 by Boeing 727s and McDonnell Douglas DC-10s.
The first air deliveries began on April 27, 1973, from Memphis International Airport, where the company established its hub. In 1994, Federal Express became FedEx.
In 1999, it set up its EMEA (Europe, Middle East and Africa) hub at Paris-Charles-de-Gaulle Airport. On March 23, 2009, a FedEx McDonnell Douglas plane crashed at Tokyo’s Haneda International Airport. On January 15, 2012, the company transferred the giant panda’s Yuan Zi and Huan Huan from China to France. In July 2015, FedEx ordered fifty Boeing 767-300F aircraft for €9.11 billion.
On October 18, 2016, the company announced an investment of nearly €220 million to expand its Roissy Charles de Gaulle hub. This new building, which is expected to be operational in 2020, aims to increase sorting capacity by 40%. The extension, of more than 27,000 m2, should make the FedEx center at Roissy the second largest in the company, after the one in Memphis, in the United States, and will create 200 to 400 jobs.
FedEx acquisitions
The company significantly expanded its presence outside the United States with the acquisition of Delco Express International, a courier company covering 84 countries in 1984.
In 1989, after acquiring Tiger International Inc., FedEx becomes the world’s largest air cargo service. The acquisition includes routes to 21 countries, a fleet of cargo aircraft, including Boeing 747s, facilities around the world and Flying Tigers’ expertise in international air freight.
In 1995, the company acquired the rights to operate an air route to China from Evergreen International Airlines. The corporation became the only U.S. cargo carrier to benefit from flight rights in that country.
In 1997, it took possession of Caliber System, Inc. With 33,500 employees and 500 facilities worldwide, Caliber System is a leader in transportation, logistics and related information services. Its operating companies include RPS Inc (now FedEx Ground), a ground mail service; Viking Freight (now part of FedEx Freight), a regional freight service provider in the Western United States; Caliber Logistics (now FedEx SupplyChain Systems), a logistics contract provider; Roberts Express (now part of FedEx Freight), a carrier of sensitive cargo; and Caliber Technology (now part of FedEx Services), a producer of information services. Caliber System, Inc. reported revenues of $2.7 billion for the year ended December 31, 1996.
In February 2000, it acquired Tower Group International Inc. A leading company in the field of international logistics and trade-related technologies. Tower Group becomes a new subsidiary of the company, called FedEx Trade Networks, which acquires WorldTariff, a tariff information company. Today, FedEx Trade Networks is North America’s largest customs agent and a leader among freight forwarders and trade advisors.
In November 2000, it acquired American Freightways (now part of FedEx Freight) and became the second-largest U.S. courier.
In December 2003, the company announced the acquisition of Kinko’s Inc. The corporation gains access to Kinko’s network of 1,200 stores, enhances its document management services and increases its reach to customers of all sizes. On June 2, 2008, it announced that FedEx Kinko would become the FedEx Office brand.
In addition, on August 9, 2004, the company expanded its residential delivery portfolio with the acquisition of Parcel Direct, which became a subsidiary of FedEx Ground and was renamed FedEx SmartPost.
On January 25, 2006, it announced that it had signed an agreement with Tianjin Datian W. Group Co. Ltd. on the acquisition of the latter’s 50% stake in the FedEx-DTW International Priority express transport joint venture and DTW’s domestic express network in China. FedEx and DTW Group created this joint venture in 1999.
On May 26, 2006, the corporation acquired Watkins Motor Lines. This acquisition allows it to expand its range of services for the transportation of heavy cargo. Watkins is integrated into the FedEx Freight business under the FedEx National LTL brand. As part of the transaction, it has also agreed to acquire the company’s assets from Watkins Canada Express, which will be renamed FedEx Freight Canada.
On 18 December 2006, it acquired ANC Holdings Limited, a domestic express transport company in the United Kingdom. Now renamed FedEx UK, ANC is integrated with FedEx Express.
On January 31, 2007, the transport company acquired its Indian service provider, Prakash Air Freight (Pafex). PAFEX is one of the largest express companies operating in India, with over 384 offices and depots serving nearly 4,400 destinations.
On April 6, 2007, the company announced the acquisition of its Hungarian partner Flying Cargo, which allowed it to start its own operations in that country.
On December 16, 2010, FedEx announced the acquisition of MultiPack, a Mexican national express parcel delivery company. MultiPack operates with an infrastructure that includes 48 distribution centers, 13 warehouses, and more than 500 stores across Mexico.
On February 23, 2011, FedEx acquired the logistics and distribution units of India’s AFL Pvt. Ltd. and its subsidiary Unifreight India. The acquisition includes AFL Logistics and Distribution which offers a wide range of services: supply chain management, warehousing, as well as a small parcel transport and distribution network through 200 daily regular lines. The acquisition also includes AFL WiZ Express which offers domestic transportation services through 150 Express Service Centres across 144 cities in India.
On April 5, 2012, FedEx acquired Polish courier company Opek Sp.z o.o., a family-owned company founded in 1994. It operates an automated main hub in Lomianki, near Warsaw, as well as two secondary hubs in Lodz and Katowice. In total, its network includes 44 branches throughout Poland. Opek employs more than 1,200 people.
On May 10, 2012, the corporation bought the French Tatex, a company created in 1976 under the name TAT Express by the airline TAT (now defunct) which employs more than 1,000 people and delivers more than 19 million packages per year, for an annual turnover of about 150 million euros. Effective March 1, 2013, Tatex was renamed FedEx Express France.
On July 4, 2012, the company strengthened its position in Brazil with the acquisition of Rapidão Cometa, one of the largest transportation and logistics companies in Brazil with revenues of more than $500 million in 2011. The acquisition of Rapidão Cometa strengthens the FedEx Express network in Brazil with 45 branches and approximately 145 distribution points, 770 vehicles and trailers, and 9,000 employees across the country.
On May 2, 2014, the company announced the acquisition of Supaswift and its subsidiaries in Botswana, Malawi, Mozambique, Namibia, South Africa, Swaziland and Zambia. Across these seven markets, FedEx Express now has direct access to forty locations in seven countries and more than 1,000 employees. Supaswift has been active in South Africa since 1990. In 2005, Supaswift merged with MyExpress (Pty) Ltd., which has been providing international services to FedEx Express in South Africa since 1991.
On December 16, 2014, it acquired Bongo International, a leader in cross-border e-commerce technologies and solutions, and integrated it under the FedEx CrossBorder brand.
In January 2015, the company completed the acquisition of Genco Distribution System for $1.4 billion, a leading provider of third-party logistics solutions in North America. Genco generates annual revenues of approximately $1.5 billion and employs more than 10,000 people. Genco now operates as a subsidiary of the corporation under the FedEx SupplyChain brand, while remaining under the direction of CEO Todd R. Peters. Financial matters are handled by FedEx Ground Commercial Services.
In April 2015, it offered to acquire TNT Express for €4.4 billion. On 24 November 2015, the United States gave the green light to the merger between FedEx and TNT Express. On 8 January 2016, the European Commission unconditionally approved the acquisition of TNT Express by FedEx.
Brazil gave its unconditional approval to the merger of FedEx and TNT Express on February 2, 2016. On April 29, 2016, China agreed to the acquisition of TNT Express by the company. On 18 May 2016, FedEx announced that it held 88.4% of the capital of the Dutch courier group TNT Express at the end of the takeover bid launched on its rival in April 2015. It formalized its acquisition of TNT Express for €4.4 billion on 25th May 2016.
Between 2016 and 2017, FedEx UK completed four acquisitions of smaller UK shipping and courier companies for a total of £13.8 million. On 3 June 2016, Roseglen Enterprises, a postal services company, was acquired for £1.9 million. TTD Transport, a road freight company, was acquired for £2 million on 29 July 2016. On November 25, 2016, the acquisition of ANC Harlow also specialized in road freight, was completed for 5 million pounds. Finally, on February 3, 2017, FedEx UK acquired Poole Express, a subsidiary of Wyvern Holdings, for £4.9 million.
On October 18, 2017, the corporation announced the acquisition of Northwest Research Inc. a leader in inventory research and management. Northwest Research is headquartered in Salt Lake City, Utah. It currently operates in Salt Lake City, Memphis and Canada.
On March 27, 2018, the corporation acquired P2P Mailing Limited, a leading global provider of transport solutions for e-commerce, for £92 million. P2P is headquartered in Laindon, UK and will operate as a subsidiary of FedEx CrossBorder within the FedEx Trade Networks division.
In January 2021, FedEx announced the elimination of more than 5,500 jobs in Europe, following the rationalization of its network with that of TNT Express, acquired in 2016. This announcement particularly affects Liege Airport with nearly 670 job cuts.
FedEx Shareholders
| List of major shareholders as of July 26, 2022 | |
|---|---|
| Capital Research & Management Co. | 6,94% |
| The Vanguard Group | 6,86% |
| Doge & Cox | 6,69% |
| Frederick Smith | 5,90% |
| PRICEMAP Management Co. | 5,11% |
| SSgA Funds Management, Inc. | 3,85% |
| T. Rowe Price Associates, Inc. (Investing Management) | 2,16% |
| BlackRock Fund Advisors | 1,99% |
| Marsico Capital Management | 1,65% |
| Frederick Smith Enterprises | 1,60% |
Branding structure of the different divisions
In August 2016, the corporation announced its decision to consolidate all of its divisions under its historic purple and orange logo characterized by its arrow hidden in white between the bottom of the second E and the X and which expresses speed, the symbol of the company. Previously, each division had a different FedEx logo, the parent company FedEx Corporation (Fed purple, Ex grey), FedEx Ground (Fed purple, Ex green), FedEx Freight (Fed purple, Ex red), FedEx Office (Fed purple, Ex blue) and FedEx Trade Networks (Fed purple, Ex yellow). “It’s about giving our customers the most powerful brand we can,” said Patrick Fitzgerald, marketing manager at the company.
FedEx by numbers
As of August 31, 2016:
- Presence in 220 countries and territories
- 400,000 employees
- 150,000 vehicles
- 650 aircraft, the second largest fleet in the world after Delta Air Lines
- 12 million packets per day passing through its global network.
The company has eleven hubs, the most important of which are Memphis (the second-largest cargo airport in the world), Indianapolis, Anchorage, Newark, Fort Worth, Guangzhou in China, Roissy in France, Cologne in Germany and Liege in Belgium.
FedEx and Sports
The company is involved in Memphis’ cultural and sporting life in a number of ways. First, by investing more than $4 million each year for the naming rights of the city’s sports hall, since 2004.
In 2018, FedEx strengthened its ties with the local basketball club as it officially appeared as the main sponsor of the Memphis Grizzlies. As such, their logo appears on the team’s jerseys.
Air fleet
As of May 31, 2021, the fleet of the company consists of the following aircraft:
| FedEx Express Fleet | |||
|---|---|---|---|
| Devices | In service | Orders | Notes |
| Airbus A300-600R | 65 | — | Largest Airbus A300 operator Withdrawal of service as of 2018 |
| Boeing 757-200SF | 119 | — | |
| Boeing 767-300F | 86 | 46 | Will replace the McDonnell Douglas DC-10 Airbus A310-200/300 |
| Boeing 777F | 43 | 15 | Deliveries until 2019 1 ex-air France freighter |
| McDonnell Douglas DC-10 | 25 | — | Largest DC-10 operator Retirement by 2020 |
| McDonnell Douglas MD-11 | 58 | Largest MD-11 operator | |
| ATR 42-300/320 | 24 | — | Operated under the FedEx Feeder brand |
| ATR 72-200 | 20 | — | Operated under the FedEx Feeder brand |
| ATR 72-600F | 30 | 20 options entered service in 2020 Launch company | |
| Cessna 208B Super Cargomaster | 238 | — | Operated under the FedEx Feeder brand |
| Cessna 408 SkyCourier | — | 50 | Operated under the FedEx Feeder brand Launch company |
| Total | 678 | 141 | |
Historic fleet
- Airbus A300-F4 (6 built)
- Airbus A310-200 (49 units operated from 1994 to 2016)
- Airbus A310-300 (21 units operated from 2000 to 2020)
- Boeing 727-100 (6 units operated from 1977)
- Boeing 727-200F (69 units operated until 2013)
- Boeing 737-200 (5 units operated from 1978 to 1981)
- Boeing 747-100 (11 units operated from 1989)
- Boeing 747-200 (11 units operated until 1996)
- Dassault Falcon 20 (33 units operated from 1973)
- McDonnell Douglas DC-10-10 (6 built)
- McDonnell Douglas DC-10-30 (6 built)
- Fokker F-27-500 (FedEx Feeder)
- Fairchild FH-227 (FedEx Feeder)
- Short 360-300 (FedEx Feeder / Express Airways; 11 built)
Accidents and Incidents
- Flight 705
- Flight 14 Express
- Express Flight 647
- Express Flight 80
- Truck ripped open by train
Main competitors
FedEx’s main global competitors are:
- UPS
- DHL
In China:
- SF Express
In fiction
- Robert Zemeckis 2000 film Cast Away features an employee (Tom Hanks) as its main character. This blockbuster film is an iconic example of intensive product placement (Fedex, therefore, and – to a lesser degree – Wilson, who becomes a character in the film: a volleyball).
- In the video game Grand Theft Auto 5, the fictional company named PostBus is inspired by FedEx.
- In the animated series Futurama, the company Planet Express is directly inspired by the company. In the episode “OPA sur PME”, it is briefly renamed PlaNex as part of a speculative operation.
- The episode Indexed Member Size of the animated series South Park refers to the corporation.
References (sources)
- Feu vert américain à la fusion de Fedex et TNT Express, Boursier;
- « FedEx UK tight lipped on four new acquisitions », MotorTransport;
- Article, Wikipedia;
- « FedEx annonce la suppression de plus de 5 500 emplois en Europe », Le Monde, 2021.
