U.S. integrator, FedEx, has upped its weekly Liège-Memphis services from 5/7 to 8/7. With this step, FedEx strengthens its footprint in Wallonia and the role of Liège Airport as an intercontinental cargo hub within its global network. The first flight, Liège-Memphis dates back to April 2017, following FedEx’s USD 4.8 billion acquisition of Netherlands-based TNT Express-NV, a former provider of mail and courier services.
Historically, FedEx’s new focus on Liège is a strategic U-turn. Following the acquisition of TNT in 2015, the U.S. integrator relocated two-thirds of TNT’s cargo flights from Liège (LGG) to Paris Charles de Gaulle, (CDG) the central European gateway of Federal Express. Thanks to numerous investments, it subsequently became the package delivery company’s most important EU hub and the second largest location worldwide after Memphis in Tennessee, USA. A further advantage of CDG is that the airport is connected to FedEx’s road feeder hub in Marly-la-Ville, 10 km away from CDG, which links France with the rest of the European road network.
Three products
Last year, however, the FedEx Board of Directors gave the green light for a strategic repositioning. Since then, FedEx offers the market three products: Purple, Orange and White. While Purple covers the classic express business, Orange stands for standard air freight shipments, i.e. pallets, containers and larger units. The White label applies to FedEx Freight Cargo shipments that are transported by third-party providers on behalf of FedEx, such as Air France Cargo, Air Canada Cargo, IAG Cargo or LATAM Cargo, among others.
Improving network utilization
FedEx has adapted its global network to this realignment, with the result that Liège’s role has been strengthened. This is emphasized in a press release published by the integrator, in which Liège is categorized as a “dedicated intercontinental freight hub and a cornerstone of the package delivery company’s reshaped air network,” aimed at improving density and network utilization.
LGG plays a paramount role
This new understanding is also stressed by Rudi Loontiens, Managing Director, hub operations at FedEx: “The increased frequency of the Liège-Memphis air route underscores the strategic role Liège hub plays in our global air network, being the intercontinental freight hub for Europe. This development reflects our commitment to a strong and sustainable presence in Wallonia. We are proud to continue supporting Liège, both in infrastructure and in people, while strengthening Belgium’s role at the heart of international trade flows.”
Meanwhile, FedEx has become the largest employer at LGG, with 1,300 team members, more than half of whom come from nearby communities. Since the TNT takeover ten years ago, the company has invested significantly in LGG’s infrastructure to ensure the fast throughput of shipments. In addition to the Memphis flights, FedEx also offers cargo services across the Atlantic between Liège, Indianapolis and Oakland. On eastbound routes, the integrator’s presence is also growing as shown by the number of flights connecting Liège with the Middle East and East Asia, all operated by B777 freighters.
