David vs. the Goliaths: FGX Takes on Shipping Giants
Startup shipping company First Global Xpress (FGX) is taking on the Goliaths of the shipping industry and winning. By creating a new business model for shipping, FGX has already taken a slingshot to companies like UPS, DHL, and FedEx by developing a greener, more efficient, and reliable way to ship a package anywhere in the world. Founded in 2002 by James Dowd and Justin Brown, FGX today ships 250,000 packages each year, and the company is projecting rapid growth for the future.
During his time working for DHL, James Dowd realized that there must be a better way to ship packages than the traditional hub-and-spoke model already in place. The hub-and-spoke system means that a package is first routed to a company’s major hub, such as Memphis for FedEx’s, before it is transferred to one or more flight to reach its final destination city. For international destinations, a single package may take three or even four separate flights. FGX circumvents this by working directly with contracted airlines in order to get a package from its starting point to its address of delivery in a single flight. This results in faster deliveries, lower costs, greener efficiencies, and less chance of a lost package.
By not having its own fleet of airlines and vehicles, FGX has eliminated costs that would typically be allocated to vehicle operators and maintenance workers. Additionally, more direct travel means lower fuel costs, as well as a decrease in carbon emissions by at least 30% per package. With fewer hubs and sorting stations, fewer packages are lost by FGX in comparison to the companies using the hub-and-spoke method, which approximate a 10% loss in packages. Finally, by using existing routes, FGX can ship packages to non-NATO and war-torn countries, reaching more destinations than DHL, UPS, Federal Express, and other more established companies.
Moving forward, FGX plans to continue replicating its business model in more locations for clients worldwide. Over the next five years, the company is pushing to continue its rapid growth, placing a greater emphasis on further green practices in its shipping methods. At the rate it is growing, the Goliaths of the shipping industry should watch out for the powerful, direct slingshot of the David in FGX.
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First Global Xpress is revolutionizing the way businesses ship internationally. FGX does this by shipping direct all over the world, and in turn, by reducing the carbon released by 30%. Every day, FGX offers you the chance to save 20% on your international shipping, cut 24 hours off of your deliveries, and reduce your carbon footprint by 30% or more—all through the simple solution of shipping direct. www.fgxusa.com
Tags: carbon emissions, cost, destinations, DHL, efficiencies, faster, FedEx, Goliaths, green business practices, green shipping, hub-and-spoke, lost packages, UPS
