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FedEx Express sees July spike in cargo activity at Memphis hub - Commercial Appeal

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Cargo weight handled in July at FedEx Express' Memphis hub jumped more than 18% year-over-year, as the company has seen a surge in flights brought on by the COVID-19 pandemic.

Cargo handled increased from 756 million pounds in July 2019 to 894 million pounds in July 2020, according to data from the Memphis International Airport, where the FedEx Express World Hub is located.

In its cargo weight data, the airport measures domestic and international cargo for enplanements (freight boarding aircraft) and deplanements (freight leaving aircraft). The biggest jump for FedEx came for international deplanements, increasing more than 46% year-over-year.

FedEx Express has been grappling with an increase in trans-Pacific and charter flights this year, fueled in part by the company’s work delivering COVID-19 relief and the lack of passenger planes available to carry goods.

Baptist Memorial Health Care had 400,000 isolation gowns delivered to Memphis on Saturday via FedEx charter, as it had to source from a manufacturer in China to refresh its supply in time.

FedEx President and Chief Operating Officer Raj Subramaniam said in June that Express flight hours were up 2.6%. The company was expecting its flight hours to decline 7% year-over-year before COVID-19 hit.

The FedEx Express World Hub is the primary sorting system in the company’s global network and employs thousands in the Memphis area.

As the hub prepares for another jump in activity during the holiday shipping season, FedEx announced a program to boost wages to $15 an hour. The program, which begins in September and has no set end date, “is designed to boost recruiting competitiveness and bolster retention,” a FedEx spokesperson said Tuesday.

Total Memphis International Airport cargo handled for 2020 so far is up 3.2% from the same period last year.

FedEx Express had been struggling prior to COVID-19 due to a slowdown in global economic activity. At the Memphis hub, cargo weight handled fell 3.4% from 2018 to 2019.

Max Garland covers FedEx, logistics and health care for The Commercial Appeal. Reach him at max.garland@commercialappeal.com or 901-529-2651 and on Twitter @MaxGarlandTypes.

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