What services does FedEx offer in the air freight industry?FedEx Express offers time-definite delivery to more than 220 countries and territories worldwide within one to two business days, and connects markets that comprise more than 99% of the world’s GDP. As well as domestic services available in many markets, international express and economy services for intercontinental and intra-European shipments are available for packages and heavy weight freight.
In addition to our core transportation services, we also provide a number of extra capabilities that create end-to-end solutions for our customers. These include additional transportation activities such as returns, cold chain and dangerous goods, and technology solutions to give customers advanced visibility and control over their shipments through tools such as SenseAware and FedEx Priority Alert. Combining the power of our global express network, the expertise of our team members, and our latest technological advancements, we are able to provide customers with solutions designed to meet their specific needs and requirements.
Do you own your own aircraft or lease from an airline? If so, how many do you own and where are they based?
FedEx both own and lease aircraft from other airlines. The FedEx fleet across EMEA consists of approximately 50 aircraft, including Boeing 777, Boeing 757, (McDonnell Douglas) MD-11, Airbus A300-600, Aerospatiale ATR-72, Aerospatiale ATR-42 and Embraer EMB120 Brasilia.
Which airports are you based at and what facilities do you have there?
FedEx serves 46 airports across the EMEA region. Our main hubs in the EMEA region are in Paris and Dubai. We also have air gateway operations at locations such as Cologne, London Stansted, Frankfurt, Munich, Milan, Bombay, Delhi and Bangalore. In addition to our sorting systems, these facilities may include warehouses and cold storage facilities.
Our Charles de Gaulle hub in Paris was granted the prestigious ISO (International Organization for Standardization) 14001:2004 certification for environmental management. The certification recognises that FedEx operations are managed in a resourceful and responsible manner, while minimizing the environmental impact.
Which regions are seeing the most growth?
With a region as large and diverse as EMEA, we see many pockets of growth across our markets. We’ve been investing in Europe throughout the recession as part of our growth strategy and have opened over 100 new locations across the continent.
With its dynamic foreign trade, Poland is a particularly important market for FedEx. Over the last 12 months we have seen the Polish economy go from strength to strength – the number of packages sent via FedEx from Poland to the rest of Europe has increased by approximately one third compared to the previous 12 months. This year we successfully completed the integration of Opek into our global network, making it easier than ever for our Polish customers to access and benefit from dynamic foreign trade.
I would also highlight Spain as one of the European countries that really felt the economic crisis, but has now grown in confidence, and its exports are more competitive in the global market. Since September 2013 FedEx has tripled its number of stations in Spain, opening 11 new stations, as well as expanding its services to new routes.
And over the next decade India is expected to have as many as 18 mega-demand cities with a GDP surpassing US$20bn, in part due to the booming e-commerce industry. This is why we have expanded our network to over 90% of India’s manufacturing GDP, providing seamless access to Indian businesses with diverse logistics needs.
How is the air freight market growing in response to the increase in e-commerce and cross border delivery?
The internet has created a technology-led global e-commerce market. The research firm Forrester has estimated that European online retail sales will continue their double-digit growth, with a compound annual growth rate of 12% over the next five years to reach €234bn (US$294bn) by 2018. For FedEx, e-commerce continues to propel global retail sales and growth.
Given the integration of worldwide buyers and sellers due the internet, light freight shipments continue to grow, and cross-border e-commerce is providing a boost to the air freight sector.
How will the air freight market develop in the future?
Continued growth of international trade in general and air cargo and air express will require adapting to customer preferences and adopting innovative systems to make the world supply chain for products more efficient.
In terms of air transport safety, the industry must support new standards and embrace modern technologies to simultaneously improve safety, security and productivity.
What plans does Fedex have to expand its air freight services?
We have really benefitted from the physical investments we’ve made in the Europe, Middle East, India and Africa region over the past three years. FedEx Express is always looking for opportunities to expand, and provide customers with the best global connectivity and improve our service offering to meet our customers’ growing shipping needs.
Through smart, strategic investments, like the acquisitions of Supaswift businesses, our customers’ business flexibility and speed to market is enhanced. During 2015 we’ll continue to optimize these investments for the benefits of our customers.
Michael Holt is the current FedEx Express senior vice president operations Europe. Michael reports to the regional president (EMEA) with key responsibilities focused on developing the long term strategic, profit and service enhancements for all the business units in Europe.
Michael started his career in 1984 working at divisional manager level for Hestair Hope, the educational supply company. After holding a variety of other logistics positions for Borden Inc. and The Caudwell Group, he moved to ANC in 2000 as group operations director. Within this role he was responsible for Hub Sortation and Linehaul plus the profit and loss of the corporate depot network and the Resource Solutions Temporary Agency Division. Michael’s remit covered everything from health and safety, environmental, security and network service to the development of a mail sortation methodology.
After being with ANC for over six years, the company was purchased by FedEx Express, when Michael became chief executive officer of the company, which was then rebranded as FedEx UK, with responsibility for integrating these two business cultures by implementing a series of evolutionary departmental alignments. Following his work on the integration of FedEx’s Polish and French acquisitions, Michael was appointed as senior vice president in January 2014.
Michael read Business Law at Huddersfield University before completing an MBA at Hull.
To read more on air freight and the postal industry, see Air power in the January 2015 issue of Postal Technology International.
November 7, 2015