FedEx Launches Global Trade Services Company
FedEx also announced plans to acquire Tower Group International -- an international logistics and trade information technology company -- from The McGraw-Hill Cos. The Tower Group, which FedEx Express has contracted with on customs issues since 1989, will serve as the foundation for building FedEx Trade Networks. The acquisition is subject to regulatory review in the United States and Canada, and the transaction is anticipated to close by the end of February.
Tower Group International will become a subsidiary of the new FedEx Trade Networks. Tower Group International and other FedEx Trade Networks units will provide services to customers of sister FedEx companies as well as other international shippers.
The new company, FedEx Trade Networks Inc., will provide:
* Full-service customs brokerage, which involves entry filing and release services, assessing and advancing customs duties and fees, and filing declarations for items shipped via express air and truck networks.
* Trade consulting and information technology, including fully integrated regulatory compliance for imports and exports, document preparation and archiving.
* E-clearance solutions to quickly clear more shipments through customs by using advanced e-commerce programs.
* Transportation and logistics services.
G. Edmond Clark, formerly senior vice president, operations support and engineering at FedEx Express, will serve as president/CEO of FedEx Trade Networks. Kenneth R. Masterson, executive vice president, general counsel and secretary at FedEx Corp., will serve as chairman of the new company and retain his duties at the holding company.
"FedEx has long been a pioneer in global express transportation and facilitating world trade; the creation of FedEx Trade Networks is a logical addition to our service offerings," Clark said. "FedEx Trade Networks will assist the global business community in planning and navigating the web of logistical, regulatory and cost challenges in the international trade arena."