5 Biggest Logistics Companies in the World

3. FedEx Corporation (NYSE: FDX)

Perhaps the most famous company in our list of the 25 biggest logistics companies in the world, FedEx Corporation (NYSE: FDX) stands strong among the top 3. It has over 600,000 employees that are serving all around the world. For the fiscal year 2020, FedEx Corporation (NYSE: FDX) reported revenues of $69.2 billion. Market capitalization for FedEx Corporation (NYSE: FDX) is about $78.5 billion.

Artisan Partners, in its Q1 2021 investor letter, mentioned FedEx Corporation (NYSE: FDX). Here is what the fund said:

“Whatever products did make it off the line met a constrained logistics infrastructure, with commercial air capacity cut and ship cargo space at a premium. Then, in the event your dishwasher part actually made it to US waters, our ports were congested due to manpower shortages and COVID-19 protocols. When the goods were finally unloaded, it turns out trucking shortages caused a spike in ground rates! All this might be bad for your dinner parties, home décor or exercise goals, but it can be great for the middlemen. Middlemen like logistics expert FedEx.

FedEx provides global logistics services. It gets your dishwasher part on a truck, or that semiconductor chip on a plane. Surging demand for at-home deliveries during the pandemic boosted volumes and allowed management to push through price increases, keeping competitive with industry peers. The industry’s renewed pricing discipline was a welcome change, reflecting a broader commitment to earn better returns on invested capital. Despite a significant re-rating of the business over the last 12 months, FedEx remains attractive based on our margin of safety criteria.”