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How can FedEx make money on this?
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<blockquote data-quote="Ricochet1a" data-source="post: 949698" data-attributes="member: 22880"><p>The overwhelming majority of bulk shipments such as Apple new tech releases are shipped direct from China into the Express system - then hit either Memphis or for west coast US addresses, will go to Oakland for sorting out to various ramps. If the shipment is large enough, FedEx will even set up a special flight going from China to the other regional hubs (Newark, Indy, Dallas, etc.) bypassing Memphis. I think AFW was closed as a regional hub but reopened recently.</p><p></p><p>If time isn't of absolute importance, what will happen is that cargo containers will be loaded "pure" with the shipper's volume at source (no mixing with other shippers volume). Then they will fly space available on existing flights. This gives the shipper a big discount on rate (they are using otherwise empty space on existing flights) and the cans will be loaded onto flights to the US space permitting. If time is important, they will be loaded "normally", and Express will utilize ad hoc flights to move the volume on time if needed.</p><p></p><p>The only thing Long Beach CA does is containerized MARITIME cargo movement, not air. Asian manufactures do indeed ship volume by sea if it isn't time sensitive, and the overwhelming majority of it will enter the US at Long Beach.</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 949698, member: 22880"] The overwhelming majority of bulk shipments such as Apple new tech releases are shipped direct from China into the Express system - then hit either Memphis or for west coast US addresses, will go to Oakland for sorting out to various ramps. If the shipment is large enough, FedEx will even set up a special flight going from China to the other regional hubs (Newark, Indy, Dallas, etc.) bypassing Memphis. I think AFW was closed as a regional hub but reopened recently. If time isn't of absolute importance, what will happen is that cargo containers will be loaded "pure" with the shipper's volume at source (no mixing with other shippers volume). Then they will fly space available on existing flights. This gives the shipper a big discount on rate (they are using otherwise empty space on existing flights) and the cans will be loaded onto flights to the US space permitting. If time is important, they will be loaded "normally", and Express will utilize ad hoc flights to move the volume on time if needed. The only thing Long Beach CA does is containerized MARITIME cargo movement, not air. Asian manufactures do indeed ship volume by sea if it isn't time sensitive, and the overwhelming majority of it will enter the US at Long Beach. [/QUOTE]
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