FedEx launches global trade subsidiary
By Staff -- Logistics Management, 3/1/2000
FedEx Corp. has announced that it will establish an independent subsidiary to provide international trade services to customers. FedEx Trade Networks Inc. will offer customs brokerage, trade consulting in regulatory compliance and information technology, e-commerce applications, and international transportation and logistics services. The company will serve international shippers as well as customers of other FedEx subsidiaries.The cornerstone of the new company will be Tower Group International, which FedEx is acquiring from the McGraw Hill Cos. Tower Group is one of the largest customs brokers in the United States. It also specializes in duty drawback, trade consulting, trade-related information products, and educational seminars. Tower Group employs 1,600 people in 63 offices in the United States and Canada.
FedEx has tapped several insiders to head up Trade Networks. G. Edmond Clark, formerly senior vice president, operations support and engineering for FedEx Express, will be president and chief executive officer. Kenneth R. Masterson, executive vice president, general counsel, and secretary for FedEx Corp., will serve as chairman while retaining his current duties. FedEx also will install one of its own as head of the new acquisition: Gerald P. Leary, formerly vice president, global trade services for FedEx Express, will be Tower Group's president and CEO.
FedEx's announcement implied that further acquisitions designed to "build" FedEx Trade Networks are on the way.
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