FedEx targets growth in the UK and Ireland
04 / 12 / 2023
Source: Air Cargo News
FedEx UK & Ireland is gearing up for growth at Stansted and Dublin as e-commerce demand continues to drive the need for investment.
Speaking at Stansted Airport in the UK, Alun Cornish, managing director, ramp and gateways operations for Northern Europe at FedEx, revealed that the company had just implemented a new import sorting machine.
Cornish said the new machine will double import capacity to a theoretical 6,000 packages per hour.
As of mid-November, the first phase of the import machine had been implemented with eight feeds. The number of feeds will increase in the coming weeks as the second phase of the project is implemented.
It is equipped with technology that captures data points via barcode scanning, providing instant updates to the FedEx operations team and the customer receiving the goods.
The sorter also includes technology that enables FedEx to intercept and redirect shipments subject to post-Brexit customs regulations to a separate area.
Last year, FedEx also implemented a new export sorting machine at the UK airport, with the cost of the two machines coming in at €25m.
The export machine features automated scanning and sorting technology to speed up the flow of exports through the site.
Cornish says the export machine’s theoretical capacity is around 4,000 packages per hour.
He adds that the implementation of the import machine came just in time for the facility’s busiest time of year.
The company has also ramped up its staffing levels at the facility to meet the peak demand.
Source: Air Cargo News
“Coming up to Black Friday and Cyber Monday we have got a good resource planned because we know we are going to see an uplift in volume, but generally internationally after that it flat lines.
“Domestic is slightly different because you see that last minute push for things like turkeys or hampers, products that need to be delivered last minute,” he says.
“But generally, the peak is around the beginning of November then you get that e-commerce weekend where it goes crazy.”
Robert Peto, FedEx vice president of operations UK & Ireland, says the company is expecting to achieve double-digit percentage volume growth this peak season.
He explains that the increase is partly down to general growth in the e-commerce market for UK and Ireland, with FedEx pointing to statistics showing a 7% increase in the UK this year.
However, he adds that the company has had a renewed focus on sales.
“We have really been making sure that we have been focussing on where we have capacity and opportunity to drive the sales team to look at those opportunities and fill those volumes,” says Peto.
He adds that customers are also increasingly utilising home delivery and international e-commerce, which has helped boost business.
On changing customer habits, Karen Reddington, President, FedEx Express Europe, recently remarked that FedEx customers were increasingly utilising economy solutions.
Source: Air Cargo News
“Our own data suggests that the wider economic picture may be having an influence on the services customers opt for, with many looking for more cost-effective shipping options,” she said.
“We see a growth in demand for economy services, and expect a rise in intra-European economy parcel volumes of nearly 10% in Europe this peak season versus last year.
“Consumer confidence is therefore shaping the backdrop of this holiday season – and the industry needs to respond by offering flexibility and choice.”
She added: “Cost consciousness will be key this holiday season, and businesses will be looking at FedEx and the wider industry to provide reliable service at a variety of price points more than ever. And this trend is likely to continue through next year.”
Elsewhere, Peto says that the wide range of services, products and global network FedEx is able to offer has benefitted the company.
He adds that FedEx has adopted a business partnership approach with its customers to help them boost their own business, which ultimately benefits FedEx.
“For us to be successful in a quite difficult time, we make sure we support our customers to access new markets or grow.
“For me that is one of the most important things we can do, to make it as easy as possible to trade whether that is domestically or internationally.”
In terms of other investments, the company recently announced it is building a new logistics facility close to Dublin Airport as it looks to cater for future growth and expedite operations.
The new facility will have warehousing measuring 14,561 sq m and offer 30 loading bays for trucks and 137 loading bays for vans.
It will be located at the Horizon Business Park to the south of the airport and will also serve as the firm’s headquarters in Ireland.
Operations to be carried out at the facility include pickup and delivery, aircraft operations, customs clearance and other back-office functions.
The facility is due to become operational in early 2025.
Other investments highlighted by Peto include systems to allow customers to choose delivery days and more pickup and delivery options.
“We have just expanded our pickup and delivery options so around 70% of the UK population will be within 3km of an alternative delivery option and we are looking to constantly improve that.”
FedEx is also investing in electric vehicles. It has recently taken delivery of 23 Mercedes-Benz eSprinters for its UK fleet and by 2030 it has the target of 50% of all new vehicle acquisitions being electric.
