FedEx
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Chris Kjelgaard takes a closer look at FedEx’s ever-growing global hub network and its future growth strategy.
B
oasting 11 international hubs spread across the globe, FedEx Express employs a hub-and-spoke concept to a greater degree than any other air transport company. With revenues of $21.6 billion in its last financial year, FedEx Express is by far the largest subsidiary of FedEx Corp, a $37 billion global giant of the logistics industry. FedEx Express is also the world’s largest express cargo carrier, using an integrated air-and-ground network to serve every US address and more than 220 countries and territories worldwide.
20 Issue 1, Volume 5
The company employs nearly half of FedEx Corp’s total workforce of more than 285,000 people. The jewel in the FedEx Express crown is its SuperHub at Memphis International Airport, which contains a massive complex of cargo-clearance and sorting facilities, which feed a one-mile-long air cargo hub, handling about 3.3 million packages per day. While the SuperHub at Memphis is by
far FedEx Express’ biggest sorting facility, as well as its most efficient, the company also has very large international sorting hubs at Paris Charles de Gaulle Airport
and Guangzhou’s Baiyun International Airport (respectively its second- and third-largest international hubs); these airports represent the company’s biggest gateways to Europe and Asia. There are three reasons why the hub-and-spoke concept and the use of multiple hubs are so crucial to FedEx Express’ time-sensitive cargo business, according to Mike Mitchell, who as vice president of Global Trade Services leads all US-based international operations for the company. First, FedEx Express relies on the hub-and-spoke model because “it’s the
GLOBAL AIRPORT CITIES
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