The numbers
FedEx has introduced a new reusable packaging option for B2B shipping companies, aiming to enhance sustainability and reduce costs. The reusable box can be utilized for up to 50 shipping cycles and is capable of transporting goods weighing up to 50 pounds.
This innovative packaging solution is expected to reduce packaging costs by up to 30% per cycle, while also significantly decreasing carbon emissions by between 64% and 88% compared to traditional single-use corrugated boxes.
The reusable packaging is specifically designed for closed-loop settings, such as fulfillment centers and store restocking, making it particularly beneficial for businesses looking to streamline their logistics operations. FedEx’s initiative is part of a broader effort to promote circular logistics, a concept that has been in development through nearly a decade of collaboration with Returnity.
Neil Gibson from FedEx stated, “In collaboration with Returnity, we have created the first scalable, reusable box solution for B2B customers, which is especially useful for our soft-goods shippers.” This reflects a growing trend in the logistics industry towards more sustainable practices.
The reusable boxes are made from durable corrugated plastic with a fabric wrap, designed to be both collapsible and automation-friendly. According to Tyler Kenney, “Our goal for this project was to build something with Returnity that behaved exactly like a corrugated fiber-based box in every way, from an operational perspective.” This design aims to seamlessly integrate with existing FedEx infrastructure.
Currently, B2B shipments account for approximately 45% of FedEx’s U.S. domestic revenue base, highlighting the significance of this new offering. As the demand for sustainable solutions grows, FedEx plans to expand the reusable packaging solution to Australia and Europe in future stages.
Mike Newman emphasized the importance of this initiative, stating, “FedEx made reuse make sense by building the business case, doing the work, and creating a model for how circular logistics can succeed at scale.” This underscores the company’s commitment to sustainability and innovation in the shipping industry.
Details remain unconfirmed regarding the timeline for the international rollout of the reusable packaging solution, but the initial response from the market indicates a positive reception to FedEx’s efforts in promoting environmentally friendly shipping options.