The company’s significant progress towards its fuel efficiency goal is the result of a number of initiatives:

• By the end of its fiscal year 2013, FedEx Express will have increased the size of its advanced alternative-energy vehicle fleet to include a total of 360 hybrid-electric vehicles and 200 electric vehicles. To date, these vehicles have traveled more than 15 million miles in revenue service.

• FedEx Express has accelerated its efforts in fuel conservation through the purchase of vehicles with right-sized engines such as the Sprinter vans manufactured by Mercedes-Benz. FedEx currently has more than 10,000 such vehicles in service, constituting more than 35% of its US pick-up and delivery fleet. Each Sprinter-type van is about 70 to 100% more fuel-efficient than the original truck it replaces.

• Since 2011, FedEx Express has incorporated almost 200 composite-body Reach vehicles into its global fleet; an additional 200 of these vehicles will be added to the fleet by the end of its fiscal year 2013. The lower weight design, along with the engine, allows for a 35% reduction in fuel usage over most conventional walk-in vans.

Approximately 35% of the FedEx Express diesel vehicle pickup and delivery fleet has already been converted to more efficient and cleaner emission models that comply with 2010 US Environmental Protection Agency diesel emission standards.

FedEx Express is not alone in its efforts to increase its overall vehicle fuel efficiency. FedEx Freight and FedEx Ground are currently testing new technologies, while also implementing vehicle innovations and modifications such as skirts and fairings to its trucks, tractors and trailers to improve the fuel efficiency of its fleet.

• In November 2012, FedEx Freight launched a beta test of two new tractors powered by cleaner-burning engines that use only liquefied natural gas (LNG). The pre-production engine used in the new tractors is slated for limited release later in 2013 and is currently the only all-natural gas engine that begins to meet the size and power needs of Class 8 trucks.

• FedEx Ground is currently testing hybrid hydraulic parcel delivery vehicles on local delivery routes across the US. These hydraulic hybrid vehicle systems leverage a computer-controlled system that eliminates unnecessary engine operation, which in turn saves fuel and reduces engine wear and tear by up to 50%.

This initiative has not only accelerated progress towards the fuel efficiency goal, but it has yielded substantial economic and environmental returns as well. FedEx Express expects to save approximately 20 million gallons of fuel this year through these efforts to increase vehicle fuel efficiency.

FedEx Express follows a three-tiered strategy to improve the fuel efficiency of its fleet: Reduce, Replace and Revolutionize. This holistic approach to fleet management allows us to develop vehicle technologies for the future while maximizing the conventional vehicles we operate today.

—Dennis Beal, vice president of Global Vehicles, FedEx Express