FedEx Trade Networks adds two new West Coast gateways for Ocean-Ground Distribution Service

Jeff Berman, Group News Editor -- Logistics Management, 6/27/2008

MEMPHIS—FedEx subsidiary FedEx Trade Networks announced this week it has opened two new gateways in Seattle, Wash. and Oakland, Calif. to support its Ocean-Ground Distribution Service, which it said will provide shippers with flexible options when shipping goods from Asia to multiple U.S. destinations and service ports in Seattle/Tacoma and Oakland/San Francisco.

In an interview with LM, Bill Goodgion, Managing Director, North American Transportation & Distribution Services, FedEx Trade Networks Transport & Brokerage Inc., said that the impetus for these new gateways came from shippers that told FedEx they were looking for multiple West Coast options when shipping to the U.S. And he explained that the reasons behind this request are driven by several factors, including: where their customers are located; the need for multiple sailing options and arrival dates; concern over congestion during peak shipping season in the Southern California ports; and ocean carriers are eliminating lanes in which they allow containers to move to inland destinations.  

“Because FedEx Trade Networks has existing operations in San Francisco and Seattle, these discussions have been underway for some time,” said Goodgion. “We have tested shipments in the past and felt it was time to formalize our program through these important gateways.”

In terms of the benefits shippers can expect to see by through these new gateways, Goodgion said that by using FedEx Trade Networks Ocean-Ground Distribution, importers (and shippers) have the ability to access the entire FedEx portfolio while bypassing their existing distribution center networks, which reduces any unnecessary handling fees, inventory carrying costs, and transportation charges, as well as gain improved visibility to these activities.

And he also provided a basic example of the flexible options these new gateways will provide.

“If an importer moves their ocean containers through the Port of Tacoma to Minneapolis, it drays the containers to their warehouse, unload, and sort by SKU and destination, explained Goodgion. “They then label and tender to a small package and/or LTL provider for final delivery. Why not capture those containers upon arrival in Tacoma and immediately inject those shipments into the FedEx network for final delivery? By tapping into FedEx Trade Networks’ ocean, customs brokerage and distribution expertise, and the speed and reliability of the FedEx delivery networks, this customer can eliminate several days and non value-added work in their Minneapolis distribution center.”

FedEx officials said that adding service in Seattle/Tacoma and Oakland/San Francisco will complement the existing Los Angeles and Chicago gateways and provide customers more options when importing from Asia with three West Coast gateways.