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A spatial analysis of FedEx and UPS: hubs, spokes, and network structure

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  • Bowen, John T.

Abstract

Despite their importance to the US economy and their rapidly increasing internationalization, relatively little has been published on the geography of Federal Express and United Parcel Service. This article assesses the evolution of the two firms’ airline networks. Their hubs in the US and abroad are analyzed with attention given to location factors such as market centrality and intermediacy, supporting ground transportation networks, and competing and complementary airline networks. Their overall networks are compared with each other and with the networks of American Airlines and Southwest Airlines using several graph theory measures. FedEx and UPS are found to operate networks with a very high concentration of activity at their principal hubs (Memphis and Louisville, respectively), despite the proliferation of hubs and spokes in recent years. Finally, the future outlook for the two package express firms is examined. Key influences on their future spatial elaboration include aircraft technology and the uneven landscape of airline industry liberalization.

Suggested Citation

  • Bowen, John T., 2012. "A spatial analysis of FedEx and UPS: hubs, spokes, and network structure," Journal of Transport Geography, Elsevier, vol. 24(C), pages 419-431.
    • Handle: RePEc:eee:jotrge:v:24:y:2012:i:c:p:419-431
    DOI: 10.1016/j.jtrangeo.2012.04.017
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    3. O'Kelly, Morton E., 2014. "Air freight hubs in the FedEx system: Analysis of fuel use," Journal of Air Transport Management, Elsevier, vol. 36(C), pages 1-12.
    4. Adeline Heitz & Adrien Beziat, 2015. "The parcel industry in the spatial organization of logistics activities in the Paris Region: inherited spatial patterns and innovations in urban logistics systems," Post-Print hal-01738437, HAL.
    5. Mayer, Robert, 2016. "Airport classification based on cargo characteristics," Journal of Transport Geography, Elsevier, vol. 54(C), pages 53-65.
    6. Meltem Peker & Bahar Y. Kara & James F. Campbell & Sibel A. Alumur, 2016. "Spatial Analysis of Single Allocation Hub Location Problems," Networks and Spatial Economics, Springer, vol. 16(4), pages 1075-1101, December.
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    10. Wong, Jinn-Tsai & Chung, Yi-Shih & Hsu, Pi-Yuan, 2016. "Cargo market competition among Asia Pacific's major airports," Journal of Air Transport Management, Elsevier, vol. 56(PB), pages 91-98.
    11. Bombelli, Alessandro & Santos, Bruno F. & Tavasszy, Lóránt, 2020. "Analysis of the air cargo transport network using a complex network theory perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 138(C).
    12. Paolo Malighetti & Gianmaria Martini & Renato Redondi & Davide Scotti, 2019. "Integrators’ Air Transport Networks in Europe," Networks and Spatial Economics, Springer, vol. 19(2), pages 557-581, June.
    13. Matsumoto, Hidenobu & Domae, Koji, 2018. "The effects of new international airports and air-freight integrator's hubs on the mobility of cities in urban hierarchies: A case study in East and Southeast Asia," Journal of Air Transport Management, Elsevier, vol. 71(C), pages 160-166.
    14. Schwieterman, Joseph P. & Craig, Carrie, 2023. "Primed for growth: Amazon Air's freighter fleet, flight activity, and payload capacity compared to FedEx and UPS," Research in Transportation Economics, Elsevier, vol. 101(C).
    15. Lakew, Paulos Ashebir, 2014. "Economies of traffic density and scale in the integrated air cargo industry: The cost structures of FedEx Express and UPS Airlines," Journal of Air Transport Management, Elsevier, vol. 35(C), pages 29-38.
    16. Walker, Guy & Manson, Alastair, 2014. "Telematics, urban freight logistics and low carbon road networks," Journal of Transport Geography, Elsevier, vol. 37(C), pages 74-81.
    17. Fried, Travis & Goodchild, Anne, 2023. "E-commerce and logistics sprawl: A spatial exploration of last-mile logistics platforms," Journal of Transport Geography, Elsevier, vol. 112(C).
    18. Morton O’Kelly, 2015. "Network Hub Structure and Resilience," Networks and Spatial Economics, Springer, vol. 15(2), pages 235-251, June.
    19. Bombelli, Alessandro, 2020. "Integrators' global networks: A topology analysis with insights into the effect of the COVID-19 pandemic," Journal of Transport Geography, Elsevier, vol. 87(C).
    20. Malighetti, Paolo & Martini, Gianmaria & Redondi, Renato & Scotti, Davide, 2019. "Air transport networks of global integrators in the more liberalized Asian air cargo industry," Transport Policy, Elsevier, vol. 80(C), pages 12-23.
    21. Alain Thierstein & Sven Conventz, 2014. "Hub Airports, the knowledge economy and how close is close? Evidence from Europe," ERSA conference papers ersa14p413, European Regional Science Association.
    22. Rodrigue, Jean-Paul, 2020. "The distribution network of Amazon and the footprint of freight digitalization," Journal of Transport Geography, Elsevier, vol. 88(C).
    23. Walcott, Susan M. & Fan, Zhang, 2017. "Comparison of major air freight network hubs in the U.S. and China," Journal of Air Transport Management, Elsevier, vol. 61(C), pages 64-72.

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