Recently, I was reading about how Raj Subramaniam is navigating one of the most challenging times for global logistics. The CEO of FedEx inherited a heavy legacy when he took over in 2022—not only to run a company with $90 billion in annual revenue but also to follow in the footsteps of Fred Smith, the founder who revolutionized the industry over 50 years ago.

What’s interesting is that Smith passed away recently, in June, leaving Subramaniam without the direct guidance of the man who built FedEx from scratch. But what caught my attention most is how Subramaniam is interpreting the change. Smith always told him: if you don’t like change, you’ll hate extinction. And he definitely needs that mindset now.

This year has been brutal for logistics. The tariffs on April 2—what the White House called “Liberation Day”—hit hard. At least 10% on imports, up to 50% for Chinese products. FedEx’s stock dropped 20% out of nowhere. By September, projections showed tariffs would cut operating profits by a billion dollars.

But here’s where Raj Subramaniam showed real adaptability. As trade between China and the U.S. contracted, he saw something others might have overlooked: Chinese exports to other Asian countries were growing. Trade between Asia and Latin America was also accelerating. Global patterns were reordering in real time.

Subramaniam began positioning FedEx in emerging markets. Vietnam, Malaysia, Thailand, India. This year, they launched direct cargo flights between Guangzhou and Penang—a critical hub for semiconductors. They invested $11 million in a 100,000-square-foot logistics facility there. New routes to Bangkok, Hanoi, Taipei. New operations in Thailand and Indonesia. They even partnered with Olive Young, the K-beauty chain, to support its international expansion.

What I find remarkable is the speed. McKinsey estimates that one-third of global trade routes could be restructured by 2035. Subramaniam is moving pieces now, not waiting.

FedEx’s stock recovered. It rose more than 50% from April’s lows. By the end of 2025, it was up 3%, though still below the S&P 500. But between March and November, revenue grew 3.3% to $67.9 billion, and profits increased 14% to $3.4 billion. Cost-cutting measures worked.

Curiously, Subramaniam’s path to FedEx was accidental. He’s from India, came to the U.S. for graduate school. His roommate missed an interview at FedEx, so he went instead—just hoping to secure a green card. He told the interviewers the truth about his immigration status. They hired him as an analyst in Memphis 30 years ago. He never left.

That’s what sets him apart. While Smith focused on pure global expansion, Subramaniam balances international growth with operational efficiency. He’s merging ground and air operations, spinning off FedEx Freight, and adapting to what investors expect by 2026.

At 58, Raj Subramaniam has a clear philosophy: people will always want to trade and travel. There’s no turning back. What has changed is where that trade happens and how it gets there. And he’s positioning FedEx to be in the right place when it does.