Is FedEx Investing Enough In Green Logistics To Stay Competitive?

Last updated on 13th Nov, 2024, by Mark M. Moore for Tradelinkhub

FedEx is a global courier firm. It ships goods across nations. Yet, the effect on the world is huge. High fuel use. High carbon output. So, what is FedEx doing about it? Are they putting funds into green logistics? Are they doing enough to stay in the game?

Yes, FedEx is. They have made big steps. They have spent more than $1 billion on green plans. They got a hybrid fleet in 2004. In just six years, carbon waste was down 22%. Not bad, right? And by 2012, the hybrid fleet grew by 20%. It shows the impact of green actions. And it’s not just the hybrid fleet. FedEx has spread its green plans to air travel. The FedEx jet fleet is now studded with Boeing 777's. They are fast but use less fuel. With plans to buy 50 more. It will cut carbon waste by 18% per trip.

The effort on home soil

In the US, FedEx has reduced waste by over 30%. It is through a simple change. The choice of package wrap. In place of plastic, they use a new fabric. It is called Tyvek. Tyvek is light and tough. It greatly reduces fuel use in every ship. FedEx has also made news with its new electric trucks. With 1,000 on order for 2021.

In the bigger picture

Yet, is it enough? Green interest is growing fast. People want less waste. They are keen to back green firms. Expect FedEx to take further steps. They have to keep up with trends. In a market led by green values. What’s up for FedEx in the future? More hybrid vans? More jets that use less fuel? Better waste use? As we watch the space, it’s clear. Green logistics is the future. FedEx gets this. It’s why they are investing. To stay in the game, in the face of green trends.

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