FedEx increasing heavy lift capabilities
Monday April 12, 7:58 am Eastern Time
By Alan Gersten
NEW YORK, April 12 (Reuters) - Federal Express is expanding its heavy freight
operations, a FedEx executive said on Friday.
''The demand for express type services for heavy freight is growing dramatically,'' Carl Asmus, FedEx's vice president of
freight marketing, told Reuters in a telephone interview from the company's Memphis headquarters.
The just-in-time philosophy and supply chain management logistics dictate that heavy freight must move faster, Asmus
said.
Until three years ago, FedEx limited the amount of heavy freight -- anything from more than 68kg to a tonne -- from any
market.
''We were afraid that heavy freight would blow out a market,'' so FedEx could not accommodate smaller packages,
Asmus said.
After demand rose, FedEx spent $570 million to establish a domestic infrastructure that could accommodate heavy
freight. This is a separate division responsible for picking up and delivering the heavy freight for FedEx's airplanes and
trucks.
When the system was ready in March, FedEx ended its heavy freight restrictions. The heavy freight is handled separately
from packages or letters and then loaded onto the aircraft or trucks with the rest of the cargo.
Now FedEx is offering one, two and three day service for heavy freight anywhere in the United States. Asmus declined
to specify pricing, only saying it was competitive with other air freight and truck services.
In the next year, FedEx plans to establish a similar worldwide heavy freight operation but Asmus declined to estimate
how much this would cost. |
