Fuel

Fuel savings at FedEx starts with a holistic examination of a customer’s supply chain. FedEx frequently works with customers to analyze and reconfigure their supply chains to enhance efficiencies and reduce customers’ overall environmental footprint.

By rebalancing our fleet and optimizing our routes, FedEx Express has improved total fleet miles per gallon within the U.S. by 14.1 percent since 2005, saving over 53 million gallons of fuel or approximately 472,700 metric tons of carbon dioxide emissions, with a goal of improving by 20 percent by 2020.

Once packages are in motion, FedEx ensures efficient transportation of goods through the FedEx Global Operations Control (GOC) -- a sophisticated operations hub that uses the most up-to-date communications technologies to track and direct the FedEx air and truck fleets.

FedEx also implements an extensive effort to educate our operations teams on how to reduce fuel consumption. For example, we work with the International Air Transport Association (IATA) to assess our fuel use and identify potential savings. Fuel conservation steps from this and other reviews are then circulated among 30 program teams across the FedEx networks, comprising our Fuel Sense program, that have a shared responsibility to execute the changes.

We couple our disciplined approach to operations with the latest innovations to further boost fuel savings. For example, FedEx was the first in our industry to operate a modern-day all-electric delivery vehicle and operates the largest fleet of commercial hybrid trucks in North America. We are also a founding member of Carex (Cargo Rail Express), a group developing an express-rail network in Europe, offering an alternative to aircraft routes, improving fuel efficiency and reducing noise impact.

FedEx takes responsibility for the environmental effects of our fuel use and continuously implements efforts to conserve resources. Our goal is to reduce greenhouse gas emissions from our FedEx Express global air operations by 20 percent per available ton mile by 2020. Since 2005, we have reduced our relative aircraft emissions by 8.3 percent on a pound per available ton mile basis. We also have a goal to get 30 percent of our jet fuel from alternative fuels by the year 2030.

Additionally, we are redesigning physical distribution models to maximize the density of our ground and air shipments. This reduces the amount of fuel it takes to ship each package, operating in much the same way as carpooling, with one loaded truck making stops versus scores of people driving individually to obtain the same items. Each FedEx Express flight now represents 9,000 customers on average. By shipping directly to customers or retail stores, FedEx Express is reducing the environmental impact of the transportation chain. Saving fuel not only benefits the environment but also the bottom line.

Here are some additional examples of how FedEx reduces fuel use:
 
As part of its Fuel Sense program, FedEx uses rigorous operations and recent advancements in aircraft technology to significantly reduce emissions and fuel use from our aircraft fleet:

  • We are replacing our 727s with 757s, which will cut greenhouse gas emissions and reduce fuel consumption by 47 percent.
  • We are replacing much of our MD-11F fleet with wide-body 777F planes, which not only carry more cargo but also move cargo farther before refueling, reducing fuel consumption by 18 percent and improving our overall fuel efficiency and significantly eliminating carbon emissions that would have otherwise occurred.· FedEx wide-body planes with flight management system (FMS) use continuous approach descent, which keeps the plane in idle during the descent, reducing engine thrust and fuel.
  • The reduction of in-gate aircraft auxiliary power unit usage has eliminated over 1.5 hours of engine use per flight throughout the fleet, saving one million gallons of jet fuel per month.
  • Ground support equipment at FedEx operations at select airports has been converted from internal combustion engine models to electric units, which saves almost 1 million gallons of jet fuel per month.

Once packages are on the ground, a network of coordinated, local FedEx teams use route optimization and cleaner vehicle technology to deliver goods to our customers. FedEx has worked to optimize our delivery routes to ensure that the most efficient sized vehicle is in use on each route. As a result of these efforts, more than one-fourth of the FedEx fleet has been converted to smaller more fuel efficient vehicles, saving more than 58 million gallons of fuel:

  • FedEx currently operates the largest fleet of commercial hybrid trucks in North America, consisting of more than 329 hybrid-electric trucks, and operates 19 all-electric trucks in Los Angeles, London and Paris.
  • FedEx Express, FedEx Ground and FedEx Freight are members of the U.S. Environmental Protection Agency (EPA) SmartWay Transport Initiative – a voluntary alliance between various freight industry sectors and EPA that seeks fuel-efficiency improvements and greenhouse gas reductions through operational changes.

Revised Jan 3, 2011