FedEx Logistics heralds opening of new Memphis-based global headquarters

Earlier this week, FedEx Logistics, a subsidiary of global freight transportation and logistics services provider FedEx, celebrated the opening of its new Memphis-based global headquarters, which it said will serve as a “focal point” for its operations spread out among 34 countries and territories.

FedEx Logistics’ services include air and ocean cargo, warehousing and distribution, customs brokerage, and trade solutions that the company said attract additional customers, and add incredible value, to the FedEx portfolio.

What’s more, FedEx Logistics said it has invested more than $50 million to sustainably renovate the building and help rejuvenate downtown Memphis.  

“Great cities have great buildings. From this magnificent facility, our employees will collaborate, innovate, and serve our global customers,” said Udo Lange, president & CEO, FedEx Logistics, in a statement. “The FedEx Logistics Global Headquarters is a vision for the future of global commerce, or as we like to say at FedEx: it’s where now meets next.”

Company officials said that this move to the nearly 200,000-square-feet former guitar manufacturing facility, which is located across the street from the FedExForum and one block from the historic Beale Street, will create a “landmark site” within the FedEx family of notable company locations.

Late last month, FedEx announced that effective June 1, Frederick W. Smith, Chairman and Chief Executive Officer, will transition to Executive Chairman, and Raj Subramaniam, President and Chief Operating Officer, assume the position of President and CEO-elect.

“FedEx has changed the world by connecting people and possibilities for the last 50 years,” Smith said in a statement. “As we look toward what’s next, I have a great sense of satisfaction that a leader of the caliber of Raj Subramaniam will take FedEx into a very successful future. In my role as Executive Chairman, I look forward to focusing on Board governance as well as issues of global importance, including sustainability, innovation, and public policy.”

In its fiscal third quarter earnings announced on March 17, FedEx reported quarterly revenue—at $23.6 billion—saw a 10% annual increase, and operating income—at $1.33 billion—saw a 32% annual gain. Diluted earnings per share—at $4.20—were up 27% annually, coming up short of Wall Street expectations at $4.65.

FedEx officials observed that quarterly operating income saw gains related to higher revenue per shipment as well as a net fuel benefit at all transportation segments. And they added that results saw gains from lower variable compensation expense and less severe winter weather, resulting in favorable annual comparisons. The improved results were partially offset by the effects of the Omicron variant and also higher purchased transportation costs and wage rates, too.