William B. Cassidy, Senior Editor | Mar 27, 2012 12:11PM EDT
FedEx Trade Networks is expanding its U.S. freight forwarding operations, opening offices in Phoenix, St. Louis, Mo., and Milwaukee, Wis.
The forwarder and customs broker is growing in the U.S. and overseas, bolstering FedEx’s industrial freight business and reaching deeper into supply chains in anticipation of greater global growth despite an uncertain economic outlook.
“Opening additional U.S. offices is a key component of our ongoing global expansion,” Andy Henry, vice president of U.S. operations, said in a statement.
The air and ocean freight forwarder has opened 50 offices worldwide since 2008, in addition to 70 existing offices in the U.S. and Canada, FedEx said Wednesday.
FedEx Trade Networks opened an office at Lyon Saint Exupery Airport in France in February, and added offices in Italy, Turkey and South Africa last fall.
With those new offices, the forwarding arm of FedEx is preparing for an economic expansion its $42 billion parent company thinks will be slow coming.
FedEx lowered its estimate for global gross domestic product growth in 2012 from 2.9 to 2.3 percent last week, saying it expects 2.1 percent U.S. GDP growth.
“We expect inventory replenishment and business investment to lead growth in the next few months,” T. Michael Glenn, executive vice president of market development and corporate communications said during a March 22 earnings conference call.
FedEx forecast 1.1 percent GDP growth in developed countries, with a mild recession in Europe, and 5.9 percent GDP growth in developing markets.
Contact William B. Cassidy at wcassidy@joc.com. Follow him on Twitter at @wbcassidy_joc
