Subscribe to our free, weekly email newsletter!


Parcel shipping: FedEx Ground adds new Chicago-area location

image
By Jeff Berman, Group News Editor
June 28, 2010

FedEx recently announced building is underway for a Chicago-area package sorting and delivery station.

The new location will be based in Greyslake, Illinois and will be the fifth major Chicago area facility for FedEx. The other facilities are located in Bedford Park, Carol Stream, LaGrange, and Wheeling

The new facility will be comprised of 214,000 square feet and is scheduled to open in late 2011. FedEx officials said it will have advanced automated material handling technology for sorting packages and dispatch up to 130 vans daily for local deliveries. FedEx expects to have more than 200 staffers when the location opens, with that figure potentially growing to nearly 500 when it is operating at full capacity.

FedEx Ground spokesman David Westrick told LM in an interview that the development of this new facility is driven by continued growth and increased volumes.

“For the Chicago-area customers, this [expansion] shows we have more density and are providing them with a deeper level of service,” said Westrick.

“We are adding capacity to the Greater Chicago area. There is room for growth, and we can pick up and deliver more packages in this area.”

This expansion is part of an ongoing national expansion by FedEx Ground focused on a transit time acceleration plan to boost daily package volume capacity and augment network speed and service capabilities.

The expansion kicked off in 2002 and since that time FedEx has opened nine new hubs and expanded or relocated more than 500 local facilities, according to company officials. What’s more, they added that this expansion plan has accelerated ground service delivery by one day or more in more than half of the U.S. And FedEx Ground also now delivers more than 50 percent of packages in two days or less and more than 80 percent of packages in three days or less, with average daily package volume rising from more than 50 percent from 2.1 million in 2003 to more than 3.3 million in 2010.
“Enhancing our distribution capability in the Midwest is an important step in our ongoing efforts to increase the size, speed and efficiency of our network,” said James T. Primm, vice president of the Central Region for FedEx Ground, in a statement. “This new facility will enable us to meet the growing demand of local shippers and transport shipments across the country.”

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Carload volume headed up 4.3 percent to 298,376, and intermodal units, at 273,376 containers and trailers were up 4.8 percent annually.

In light on various service-related freight railroad service issues, the Department of Transportation’s Surface Transportation Board (STB) recently announced it is now requiring Class I railroads to publicly file weekly data reports on service performance. These weekly reports are slated to begin on October 22.

According to its data, spot market volume for the month of September was up 32 percent on an annual basis and set a new record for the 14th straight month, with gains for each of the three equipment categories it tracks, including load availability for: dry vans up 42 percent; refrigerated (reefer) up 24 percent; and flatbed volume up 46 percent.

FedEx Freight and Con-way Freight, two of the largest non-union LTL carriers in the nation, are battling organizing efforts by the Teamsters union in a closely watched unionization effort.

With the holiday shopping set to gear up in a few weeks, it looks like the retail sector could use a seasonal spark based on declining retail sales in September, according to data issued by the United States Department of Commerce and the National Retail Federation (NRF).

Article Topics

News · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA