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2015-2017 Archive (Please contact us for access)

UPS Announces Strategic Cross-Border Investment In El Paso, Texas

Summary: UPS announced a $41 million investment in a new package operations center in El Paso, Texas. The facility will serve a manufacturing region known as the North american Borderplex that stretches across Texas, New Mexico and Ciudad Juarez, Chihuahua, Mexico and is home to 2.5 million people and one of the world’s largest bilingual workforces. UPS’s facility will add more than 153,000 square feet of new processing capacity and is expected to begin operating in late 2018. The new facility will also support the UPS Trade Direct® Cross Border service.

LogisticsTI Take: Despite ongoing political discussions concerning NAFTA, cross-border is and will remain an important economic engine for businesses. According to the president of UPS’s Red River District that includes Texas and Oklahoma, “The new building positions UPS to increasingly support U.S. companies growing their cross-border commerce, as well as better serve the rapidly changing business and residential needs of our customers in West Texas.”


FedEx Commits More Than $3.2 Billion in Wage Increases, Bonuses, Pension Funding and Expanded U.S. Capital Investment Following the Passage of the US Tax Cuts and Jobs Act

Summary: Following the passage of the US Tax Cuts and Jobs Act, FedEx announced the following investments:

  • Over $200 million in increased compensation, about two-thirds of which will go to hourly team members and the remainder will fund increases in performance- based incentive plans for salaried personnel.
  • A voluntary contribution of $1.5 billion to the FedEx pension plan.
  • Invest $1.5 billion to expand the FedEx Express Indianapolis hub over the next seven years. The Memphis SuperHub will also be modernized and enlarged.

LogisticsTI Take: FedEx noted in its press that it believes the Tax Cuts and Jobs Act will likely increase GDP and investment in the United States. Indeed, investing back into the business will expand capacity at the company’s two largest US hubs. In addition, FedEx is giving back to its employees – a morale booster and attract new talent. Already a “Most Admired” company on Fortune’s annual list, this demonstrates why it has earned that title.


FedEx Officially Opens its Expanded Shanghai Express and Cargo Hub

Summary: Located at Shanghai Pudong International Airport, the facility utilizes leading technologies and innovation to enhance operational efficiency. The 134,000 square-meter facility is equipped with a dedicated Customer Care Center as well as cold chain facilities. FedEx currently has 66 weekly flights in and out of the Hub. With a fully automated sorting system, the new facility can process up to 36,000 packages and documents per hour. The facility utilizes information technology to send real-time information, including flight and shipment status to customers’ mobile devices so they can arrange pick-ups accordingly and reduce logistics cost. With dedicated areas for China Customs and China Entry-Exit Inspection and Quarantine (CIQ), the Hub simplifies operations and improves the Customs clearance process.

According to the president and CEO of FedEx Express, “The Asia Pacific region remains the growth driver of the world. This new Hub adds yet another major facility to our already comprehensive regional and global network, giving our Asia Pacific customers reliable access to international markets.”

LogisticsTI Take: The major express providers including DHL and UPS are all expanding Asia-Pacific services and networks. FedEx’s latest expansion is a plus for temperature controlled items. As noted in the press release, the new Hub features a Cold Chain Center which will support the healthcare industry, one of the fastest growing sectors in the Asia Pacific region. Equipped with temperature-controlled storage ranging from -22°C to 25°C.

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