Hub and Spoke

Hub and spoke is the dominant logistics network model used by major carriers. Packages are collected locally, transported to large central sorting facilities (hubs), then distributed out to destination areas (spokes) for final delivery.

How Hub and Spoke Works

Package Journey

1. Collection - Pickup or drop-off at origin
2. Local spoke - Transported to nearby facility
3. Hub - Consolidated and sorted at central location
4. Destination spoke - Sent to destination facility
5. Delivery - Final mile to recipient

Visual Flow

Origin → Local Facility → HUB → Destination Facility → Recipient
         (Spoke)                    (Spoke)

Major Carrier Hubs

UPS Worldport (Louisville, KY)

• Largest automated sorting facility globally
• Processes 2+ million packages daily
• Central to UPS air network
• Packages can transit through in 17 minutes

FedEx Super Hub (Memphis, TN)

• FedEx Express main hub
• Largest cargo airport operation
• Overnight sorting for next-day delivery
• Handles millions of packages nightly

USPS Network

• Multiple regional distribution centers
• Processing and distribution facilities nationwide
• Network Distribution Centers (NDCs)
• Local post offices as final spokes

Advantages of Hub and Spoke

For carriers:

• Efficient sorting and consolidation
• Economies of scale
• Reduced direct routes needed
• Centralized operations

For customers:

• Broad coverage with fewer facilities
• Consistent service levels
• Reliable transit times
• Lower shipping costs

Disadvantages

Potential issues:

• Single point of failure (hub)
• Weather impacts entire network
• Longer routes for some packages
• Congestion at hubs

What happens during hub disruption:

• Severe weather at hub delays everything
• Hub capacity constraints during peak
• Security incidents cause delays

Hub-and-Spoke vs. Point-to-Point

How It Affects Transit Time

Example: Seattle to Miami

Hub-and-spoke route:

1. Seattle pickup (Day 1 evening)
2. Seattle facility (Day 1 night)
3. Flight to Louisville hub (overnight)
4. Sort at hub (early morning)
5. Flight to Miami (Day 2 morning)
6. Miami facility (Day 2 midday)
7. Delivery (Day 2 or 3)

Zone Skipping Alternative

High-volume shippers may bypass hubs by trucking directly to destination regions, reducing transit time and cost.

Network Optimization

Carriers continually optimize by:

• Adding regional hubs
• Direct flights between high-volume cities
• Ground consolidation programs
• Multiple hub locations
• Technology for faster sorting

Understanding Tracking with Hub-and-Spoke

Typical tracking events:

1. Picked up
2. Arrived at origin facility
3. Departed origin facility
4. Arrived at hub
5. Departed hub
6. Arrived at destination facility
7. Out for delivery
8. Delivered

The “hub” scan often appears as:

• “In transit” at major city
• “Arrived at UPS facility” (Louisville)
• “At FedEx location” (Memphis)