For the logistics giant, the region has become a key part of its global network, not only as a supplier to the United States, Europe and Asia, but also as a source of inbound traffic for various products.

Today, February 14, the world celebrates Valentine's Day. However, at FedEx, this date began to be felt on February 1 at its hub in Miami, the largest cargo and cold storage center in the logistics giant's network at a global level, located at the International Airport of that city, with the massive arrival of flowers from Colombia and Ecuador.

During this month, the company estimates that it will transport around 800,000 kilos of flowers from Colombia and more than 290,000 kilos from Ecuador for the Valentine's Day season, one of the most important days for the flower industry.

“Flights from these countries arrive in Miami full of flowers. Fortunately, we have made investments in temperature control facilities not only to support flowers but also for other customers whose products also require temperature control,” says Luiz R. Vasconcelos, president for FedEx Latin America and the Caribbean to AméricaEconomía .

Miami has become a strategic point for exports from the region. “Miami International Airport is the main gateway for perishable products from Latin America, but also for other e-commerce or pharmaceutical items. In addition, we not only connect South America and Central America with Miami, but from here we can connect to any place in the United States and the world. This is important, especially for small and medium-sized companies so that they can introduce their products to a greater number of markets,” explains the Brazilian executive.

In this sense, according to Vasconcelos, the boom that e-commerce has experienced in recent years has opened many markets to this segment of companies. Whether it is flowers, agricultural products, ponchos or bathing suits, these can arrive in one to three business days to any place in the United States and without intermediaries.

“We have the IPE (International Priority Express) service, which has been very important in supporting producers and farmers in Latin America. With this service, they can ship from the farm to any address in the United States within 48 to 72 hours. Many years ago, customers had to rely on intermediaries to place products in this market. Now any farmer, small, medium or large company can have their website and sell directly to any consumer in the United States. This also allows them to have a controlled inventory,” explains Vasconcelos.

Export evolution

Although the export of raw materials has been key to the development of the economies of Latin American countries, today we are seeing greater evolution and diversification.

“In the last five years we have seen Latin America play a more important role as a region that today supplies, for example, a large part of the medical devices, pharmaceuticals and perishable products consumed in the US and also go to Europe and Asia. Mexico produces four million cars each year and 80% are exported to the United States. All the auto parts sold in that country come from Latin America and the same is true for flowers,” notes Luiz R. Vasconcelos.

On the other hand, the president for FedEx Latin America and the Caribbean highlights that the region has become a source of incoming traffic for various products. “Latin American countries are increasingly buying from Europe, Asia and the United States. Their position as a commercial partner for our global operation has become more important and strategic, and also in some industries, more relevant. In the past, many, many years ago, many more raw materials and agricultural products were exported, but today we see a lot of high technology in auto parts, medical devices and pharmaceutical products. There are more high-end products that also require stronger and more resilient industries and investments in those countries.”

He also points out: “Latin America is extremely important for our global network, but it is also important for global trade. Other countries continue to invest in Latin America, such as the United States, Europe and China, and these investments are fixing this trade with greater added value.”

Invest to connect

The diversification of Latin American export offerings is accompanied by a longer list of shipping origins. In light of this, in recent months, FedEx has expanded cargo flights, such as the one that connects Argentina, Chile and Ecuador directly with Miami and, in Central America, the route that links Guatemala and Honduras with the North American city.

At the loading center, the area has been expanded to 24,409 square feet (over 2,200 m2 ) , the speed of dispatch has been doubled, and it is the largest cold storage facility to have a dedicated space for flowers.

Technology also plays a key role in deliveries, especially in optimizing last-mile routes to determine the most efficient way to reach the customer, whether by car, truck, motorcycle, bicycle, on foot or even a barge on a river in the Amazon rainforest in Brazil.

In the field of artificial intelligence, it is used in customer service centers. “We have implemented artificial intelligence to answer calls and it is impressive. The level of consumer satisfaction is quite high. Although there was some resistance in the past, satisfaction is increasing because the experience is good and people feel more comfortable choosing the machine because they have understood that it is very reliable,” says Vasconcelos.

Data is also a powerful weapon in transporting the 18 million packages a day across the board. “There is a lot of information about countries, markets, verticals, industries and how we can optimize what we do every day,” says the FedEx executive.

The role of Latin America in FedEx

The American parcel and logistics group reported a net profit of US$794 million at the end of its first fiscal quarter, which ended in August 2024, which is equivalent to a 26.3% decrease compared to the same period of the previous year. Meanwhile, FedEx's turnover reached US$21,579 million, 0.5% less compared to the same period of the previous year.

Although the financial results are not broken down by region, Luiz R. Vasconcelos says that Latin America plays a relevant role in the FedEx network. “There is intense traffic in major towns and cities to operate, while consumer expectations continue to rise, so we develop smarter and more efficient supply chain solutions for our customers, we can continue to evolve despite any local problems or challenges. We have earthquakes and hurricanes in this region where we have been operating for more than 30 years, so we know how to survive and how to navigate through those problems that for us are just part of everyday life, it is a matter of planning,” concludes Vasconcelos.