smaller than its business-to-business revenues, this segment has
become the fastest growing market and has required constant
innovation to make satisfactory deliveries to consumers. Ramping
up FedEx Extra Hours, a service that enables participating retailers
to fulfil e-commerce orders into the evening and receive late
pick-ups by FedEx Express, was another step forward in the
direction of e-commerce.
In addition, last year saw two new major FedEx Ground hubs
open in Pennsylvania and Connecticut to serve some of the busiest
transportation corridors in the US; this marked the start of a
transformation in FedEx Ground operations that will allow the
specialist to increasingly integrate FedEx SmartPost packages given
to the USPS into FedEx Ground standard operations, while
improving its capabilities for handling large and heavy items. In
line with growing volumes of cargo, FedEx also saw fit to
modernise its World Hub in Memphis as well as expand its Express
Hub in Indianapolis. Behind the scenes, upgrades from the
traditional mainframe computer systems to cloud-based facilities
were engineered; whilst in the air, fleet modernisation was also
undertaken.
On the topic of IT, FedEx recognised the value of blockchain
back in 2018, and has been
endorsing the technology
ever since.
from the company’s
thoughts, though: in 2019 it
began development work on
the FedEx SameDay Bot, an
autonomous delivery device
that is due to begin real-life
testing in the middle of this
year.
becomes clear that the US
and Canada, despite the
ongoing pressures within the
air cargo sector, emerged in
good shape. It will be
interesting to record their
experiences of 2020 next
time around.
A321-200PCF
7,988ft3 Volume
59,680lbs Standard Payload
Key last year for FedEx was the opening of
two new ground hubs
integration within the US,
Canada and the Middle East,
along with the absorption of
the sales forces. But according
to the logistics specialist, 2019
was above all a year of
innovation.
There was an increase in
capacity at FedEx Ground,
thanks to an expansion in
operations throughout the
FedEx Ground US network, to
six days per week year-round;
this increased to seven days
early in 2020.
There was also investment
in infrastructure to more
effectively handle e-commerce
growth; and while FedEx
admits that its residential
e-commerce revenues are much
757-200PCF
8,358ft3 Volume
Up to 84,000lbs Payload
The future was never far
Looking back to 2019, it
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Brian McCarthy brian.mccarthy@precisionaircraft.com • Zach Young zachary.young@precisionaircraft.com
www.airlogisticsinternational.com June 2020 17
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