FedEx Corp. is investing $54 million to expand a major truck terminal in the Netherlands that is key to supporting logistics customers in Europe and the new strategic focus on international premium air freight, which was recently integrated with the company’s less-than-truckload network.
The express shipping company last week said it will buy and develop a facility adjacent to its road hub in Duiven, Netherlands, to increase capacity and improve service reliability across its European road network, as it pursues growth in the premium parcel and freight market. The project will increase palletized freight handling capacity by more than 50% and add 65 dock doors, bringing the total to 265 docking spaces on site. That will allow more freight shipments to be delivered directly from FedEx (NYSE: FDX) customers instead of having to route through intermediate consolidation centers.
FedEx’s European trucking network has become more important after the recent reorganization of FedEx’s air network into express parcel and deferred freight segments to maximize aircraft density and sorting efficiency on the ground. A portion of FedEx’s airline now operates an international daytime schedule to carry heavy freight that doesn’t require maximum speed, allowing for the integration of air and road networks in a truck-fly-truck delivery model that is more efficient to operate than moving all goods by air.
Management has described this deferred air network as an extension of its European and U.S. less-than-truckload networks, designed to attract high-yield freight, such as pharmaceuticals, perishables, electronics and automotive components that is more profitable per pound than heavier, general consignments. FedEx doesn’t operate a true LTL network, especially after hiving off its FedEx Freight subsidiary on Monday, but hauls shipments with LTL-characteristics on FedEx tractor trailers that deliver air freight to industrial customers.
Since 2024, FedEx has prioritized capturing a greater slice of the $90 billion deferred air cargo market, especially the premium segment. The addressable market for premium air freight is $22 billion and FedEx says it currently holds a 12% market share.
“Our European road network plays a vital role in supporting this ambition,” said Safia Ladhari, managing director, network operations at FedEx, in a news release. “It enables us to move intercontinental air freight shipments efficiently across Europe by road, complementing our air operations. This integrated…model is a defining element of our very competitive freight services and offers customers a highly reliable and cost‑efficient solution.”
The first phase of the expansion will focus on the initial requirements to operate the facility, said FedEx. Subsequent phases will focus on improving operational efficiency, including through connectivity between the new and current building.
“Over the past year, the Duiven facility has seen strong growth in parcel and freight volumes, particularly during peak periods such as the year‑end season,” Ladhari explained. “This expansion ensures we are well positioned to support our customers through continued growth.”
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
RECOMMENDED READING:
UPS upgrades service level for US-Mexico industrial shippers
Supply Chain AI Symposium
Past the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
Past the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
The Old Post • Chicago, IL Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now