FedEx uses a hub and spoke system to move freight around the world. It has its main hub in Memphis, which is the 2nd-largest airport in the world for cargo movements (ACI, 2014). Several other FedEx hubs feature in the top cargo traffic rankings -- Anchorage, Pudong, Dubai, and Miami. 65% of average daily package volume is domestic U.S. shipments, hence why Memphis is the main focal point in the system (2015 FedEx Annual Report, p.21).
International operations are divided into two types -- international domestic and international export, reflecting the destination. International domestic would be, for example, a package going from Vancouver to Toronto. Export would be anything that crosses a border. The breakdown of average daily volume for international shipments are international domestic 58.8% and international export 41.2% (2015 FedEx Annual Report, p.21).
The international system is still based on the hub-and-spoke network. There are several international hubs around the world. These include Pudong (Shanghai), Dubai, Guangzhou, Osaka, Paris and Incheon (Won, 2016; FedEx, 2014). From these hubs, packages are gathered by the different stations in the region, and then all shipped to the hub, usually via air. In the more established regions, this means using FedEx company planes, but there are partners to cover a lot of the world's outlying areas.
Canada represents a somewhat unique system in FedEx in that it does not run a hub-and-spoke. There are mini versions of the hub-and-spoke, such as all Alberta flows run through a small hub in Calgary, but the general pattern...
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