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FedEx announces major changes to its delivery system — here's what's happening

The moves come at a crucial time.

FedEx is making significant strides in its sustainability efforts, with a goal of full carbon neutrality by 2040.

Photo Credit: iStock

As companies continue to introduce green initiatives and reduce their carbon footprint, shipping organizations find themselves in the spotlight, and FedEx is making some positive changes. 

According to a sponsored piece in Forbes Asia, FedEx has launched several initiatives across the continent to advance its sustainability ahead of its target of full carbon neutrality by 2040. 

FedEx's facilities in Singapore and Incheon, South Korea, both use solar panels that reduce their reliance on fossil fuels from the domestic power grid. They've been pushing for more efficient travel routes, while automation is reducing task redundancy and improving energy efficiency. 

For their transpacific flights, FedEx has started using sustainable aviation fuel at Los Angeles International Airport, and SAF currently accounts for 20% of their fuel usage, with plans to expand. 

But most important to FedEx's Asian decarbonization plans is the implementation of electric vehicles for ground delivery. Last-mile delivery — the stretch between a processing center and the final destination — is often the most carbon pollution-intensive part of a package's journey. 

As such, FedEx has been introducing EVs across Asia — from custom-built vans in Singapore to EVs comprising over 20% of its delivery fleet in China — and has introduced electric tricycles in Taiwan to help navigate dense city streets. 

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The moves come at a crucial time for the freight and shipping industries. Air freight generates significant harmful carbon pollution, and FedEx is a major part of the problem. 

According to a 2024 report by the Guardian, FedEx and UPS accounted for 24.7% of the air freight industry's carbon pollution in 2023, and the industry had seen pollution swell by 25% since 2019. 

Air freight is significantly more carbon-intensive than shipping by sea or land, making it of the utmost importance for companies in air freight to find ways to reduce their pollution.

It's clear that FedEx is working toward a more sustainable, greener future and is seeking more efficient ways to ship your packages.

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