Fedex, UPS and DHL

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History In 1913, C.J. Tower & Sons, forerunner to FedEx Trade Networks subsidiary FedEx Trade Networks Transport & Brokerage, begins operation as a customs broker in Niagara Falls, N.Y. It was not until 1971 that Federal Express Corporation was founded in Little Rock, Ark. In 1975, FedEx installed the first drop box for the public and since then the company developed and maintained a strategic leadership in managing a broad group of transportation services, e-commerce and other business services. The company offers integrated business solutions through a network of subsidiaries operating independently, including: FedEx Express, the world's largest express transportation company; FedEx Ground, North America's second largest provider of small-package ground delivery service; FedEx Freight, a leading provider of regional less-than-truckload freight services; FedEx Custom Critical, the world's largest provider of expedited time-critical shipments; and FedEx Trade Networks, a provider of customs brokerage, consulting, information technology and trade facilitation solutions. (www.fedex.com) Financial strength and market share FedEx has annual revenues of $20 billion and is the leading global provider of transportation, e-commerce and supply chain management services. FedEx accounts for a large market around the world. It is a fact that FedEx reported an average daily express package volume of 3,167,000 for the fiscal year ended May 2004, with U.S. volume of 2,771,000. Of those U.S. shipments, 1,846,000 (66.6%) were overnight shipments, and 667,000 (24.1%) were overnight letters. Total international daily package volume was 396,000, just 12.5% of all shipments, and FedEx does not break out overnight shipments (www.yahoo.com) (Appendix A) Geographical coverage The FedEx delivery company, the world's most important courier service, provides a good example of how intermodal transport operates. The FedEx network is built around a single hub airport located on each continent. The American hub is located in Memphis, Tennessee, the Near East one is located in Dubai, and Subic Bay, Philippines acts as the Asian hub and, Roissy, France represent the European hub. These redistribution points act as bridges between international relations. Beside its strategic hub airports web, FedEx is present in more than 325 airports in 212 countries around the world.

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