FedEx Chief Executive Officer Raj Subramaniam says the world is entering a new phase of global trade as rising tariffs and geopolitical tensions redraw long-established shipping routes. Rather than calling it the end of globalization, Subramaniam describes the shift as “re-globalization,” where trade flows are being reorganised across regions.
The comments come as FedEx faces growing pressure from higher US import tariffs, especially those imposed on Chinese goods. New levies announced by the US government have increased the overall tariff burden on imports, disrupting cross-border trade volumes and raising costs for global businesses. These developments have had a direct impact on logistics companies like FedEx, whose business depends heavily on smooth international trade.
Following the tariff announcements, FedEx shares fell sharply, reflecting investor concerns about slower global shipments and rising operational costs. The company has since warned that tariffs could reduce its operating profit by around $1 billion in the current financial year. However, FedEx has taken steps to cushion the impact by redesigning its network and shifting capacity to faster-growing trade lanes.
Subramaniam noted that traditional trade routes, particularly between China and the United States, are weakening. At the same time, China’s trade with other parts of Asia, Latin America, and emerging markets is expanding. This realignment, he said, is forcing logistics companies to become more flexible and region-focused rather than relying on one dominant global supply chain
“The world is changing, and trade is changing with it,” Subramaniam said, adding that companies must learn to operate in a less predictable but still deeply connected global economy.
FedEx is responding by cutting costs, streamlining operations, and investing in technology to better track and manage complex trade movements. The company is also adapting its air and ground networks to reflect changing demand patterns across regions.
Taking over from founder Fred Smith, Subramaniam acknowledged that volatility is now a permanent feature of global trade. While tariffs and policy changes may continue to create uncertainty, he said FedEx is focused on resilience and long-term adaptation rather than short-term disruption.