1. The FedEx Network

Intermodal transport can be described as the transport of merchandise by at least two transport modes with a minimum of one stage being made by train, by truck, or by maritime modes. In other words, it is a cargo unit that is transferred from a transport mode to a another. The optimal combination of modes allows transporters to achieve what is known as economies of scope. In a majority of cases, the first and/or last steps of the cargo itinerary consist in truck transportation and are to be minimized.

More than ever, delivery firms' activities are based on intermodal transport to optimize delivery times and, in turn, their overall efficiency. The FedEx delivery company, the world's most important courier service, provides an illuminating 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, Subic Bay (Philippines) acts as the Asian hub and, finally, Roissy (France) constitutes the European hub. Presence of a high speed train connection (TGV) inside the airport was determinant in the choice of the latter over Amsterdam. These redistribution points act as bridges between national and international links. Beside its strategic hub airports web, FedEx is present in more than 325 airports in 212 countries around the world. Needless to say, such figures well illustrate the ubiquitous character of the American firm.

2. The FedEx Multimodal System

Generally, parcels shipped through FedEx start their journey at one of the 42,500 deposit points around the world to be later picked up and carried by truck (the company has a fleet of 40,500 vehicles around the world). Parcels requiring long distances are carried to a nearby airport to be subsequently transshipped and carried out by airplane. For airway transport, the company relies on a fleet of 610 aircraft.

Today, FedEx is the most important parcel shipping company in the world, and the ninth airline company on the planet. It was the first airline company to apply the principle of the hub and spoke network through which courier is first brought to a hub airport to be sorted and loaded afterwards onto some other flights heading toward final destination. This system is now used by most of the parcels companies who work at macro scales. The star shaped network system allows FedEx to ship more than three million parcels daily with a next-day delivery guarantee. To improve the stability and reliability of the air freight system, FedEx maintains a group of about 5 planes flying empty over the United States each night. In case of additional demand, of if a plane needs repairs, an empty plane can accommodate this requirement on call.