FedEx has redeployed another large freighter from its overnight parcel network to its daytime operation focused on deferred cargo as it pursues more business from freight forwarders.
The integrated parcel logistics company last week announced that it has added a nonstop flight between Liège, Belgium, and its global hub in Memphis, Tennessee, utilizing a Boeing 777 freighter aircraft. The new flight increases frequency on the route from five to eight times per week.
The 777’s redeployment is part of a broader transformation of the air network that is designed to eliminate excess capacity amid a slowdown in parcel volumes, as well as reduce costs and improve customer service. A key part of the color-coded strategy involves segregating the fleet by product categories and demand requirements.
FedEx (NYSE: FDX) transferred the widebody aircraft from its Purple network, which operates at night moving express parcels, to its daytime Orange network geared toward premium international air cargo such as pharmaceuticals and automotive parts, spokesman Jonathan Lyons said.
“Liège plays a central role in the Orange Network. With retimed flights and strong road connectivity, the site is ideally positioned to feed deferred and freight volumes into our European road network, offering efficient cross-border connections without relying solely on express timelines,” he added in an email.
Streamlining FedEx’s air infrastructure has been in the works for two years but is gaining momentum following the September expiration of a large U.S. Postal Service contract.
The Purple network is oriented toward cross-border parcel customers willing to pay for the highest level of speed, with dedicated aircraft timed to arrive overnight at FedEx hubs for next-day delivery. Fewer large freight shipments are being mixed in to maximize aircraft density and sorting efficiency on the ground.
FedEx has targeted the $80 billion deferred airfreight market as an area for growth.
With Orange flights, FedEx is competing directly with all-cargo carriers for priority, high-yield international freight that is more profitable per pound than heavier, general consignments.
Orange flights are scheduled into primary and regional sortation centers during the daytime, when workers have more time to build dense pallets. The White network is for low-priority shipments booked on commercial passenger aircraft by FedEx’s freight forwarding arm.
Under the strategy, FedEx has repurposed its Liège terminal into a dedicated intercontinental freight hub for Europe. It also supports nonstop trans-Atlantic flights to Indianapolis and Oakland, California.
Last month, FedEx added to the Orange network with a new route from Singapore-U.S. route.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
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