Behind the Scenes: An Inside Look the FedEx Ground Hub System
Do you ever wonder how it all works?
How nearly 9 million FedEx Ground packages are successfully sorted, transported, and delivered every day to individuals and businesses across the country? Of course, your FedEx route business has a lot to do with it. But before those parcels even make it onto your linehaul trailers, trucks, and vans, something pretty neat is happening in locations all over the country.
FedEx Ground—like other divisions within the company—utilizes an innovative “hub and spoke” system to streamline deliveries and keep fuel costs low. It comprises more than 600 operating facilities strategically located throughout the United States and Canada, including 39 regional hubs alongside local pickup and delivery stations called satellites (the “spokes” on the wheel).
Where are the major FedEx Ground hubs?
FedEx Ground is headquartered in Pittsburgh, Pennsylvania. As you likely know, the majority of FedEx Ground workers are not employees of the company but rather independently owned businesses whose owners purchase routes and hire drivers to transport packages between hubs and satellite stations.
Among the more than three dozen regional FedEx Ground hubs located throughout the United States and Canada are those located in Portland, Oregon; Phoenix, Arizona; Denver, Colorado; St. Paul, Minnesota; Syracuse, New York; and Atlanta, Georgia; as well as several hubs in northern, central, and southern California and those in Montreal and Toronto, Canada.
Where does your FedEx route business fit into the picture?
As we mentioned above, your FedEx route business plays an important role in transporting packages between hubs and making sure they get to where they need to go.
Packages are transported from hub to hub by linehaul drivers. They use semi-trucks to deliver packages either within a state or across several states, and some linehaul runs may span hundreds or thousands of miles on major highways.
Once the parcels arrive at a satellite location, P&D drivers then load them onto small box trucks or vans to be delivered to local homes and businesses.
Is owning a FedEx route in your future? Take the first step with KR Capital.
Becoming a FedEx ISP is a business opportunity like no other. Not only does it give you the chance to be your own boss and run your own business, but you can rest assured that the services you are providing are always going to be needed—especially nowadays with the recent eCommerce boom.
Plus, your enterprise will be backed by one of the most influential and successful names in the logistics industry, and the FedEx company provides ongoing support and marketing materials to help you grow and scale your route business.
When you’re ready to take that first step and buy FedEx routes in your area, contact the team at KR Capital. As the nation’s leading FedEx brokerage firm, we can help guide you through the complex FedEx approval process and even connect you with a robust network of FedEx lending partners to help make your dream a reality.