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FedEx CEO Navigates Shifting Global Trade Seas
2 Feb
Summary
- FedEx CEO adapts to 're-globalization' and shifting trade corridors.
- Tariffs imposed in April 2025 impacted FedEx's operating profits.
- Subramaniam, a 30-year FedEx veteran, leads the company's evolution.
FedEx CEO Raj Subramaniam is steering the company through a period of "re-globalization" and evolving trade dynamics. Following the imposition of global tariffs starting April 2, 2025, FedEx faced significant adjustments, with projections of a $1 billion hit to operating profits for the fiscal year ending May 31, 2026. Despite an initial 20% stock plunge, shares have since recovered as FedEx adapts its strategies.
Subramaniam, who has spent 30 years at FedEx, emphasizes adaptation, recalling founder Fred Smith's lesson: 'If you don't like change, you will hate extinction.' He is overseeing cost-cutting initiatives and network consolidations, including spinning off FedEx Freight. The company is actively developing new trade routes, particularly in Asia, with increased flights connecting hubs like Guangzhou to emerging markets.
New routes include nonstop cargo flights between Guangzhou and Penang, Malaysia, and expanded services to Bangkok, Paris, Seoul, and Taipei. FedEx is also establishing new facilities in Thailand and Indonesia. Concurrently, the U.S. market remains vital, with new cargo connections to Anchorage and across the continental U.S.
