Why Is Memphis The Logistics Hub of America?

Scott Hothem • May 14, 2014

Founded in 1819 by Andrew Jackson because of its strategic location on the Mississippi river, for almost 200 years Memphis has been an important transportation hub. Over the years, as logistics assets have been added, Memphis has become a major logistics center. Because of its world-class airport and ancillary logistics assets, it is considered to be ”.  Memphis boasts the country’s top cargo airport and the world’s second-busiest in terms of cargo, largely due to the fact that Memphis is home to the major FedEx hub.  In 2011, the airport handled 3.9 metric tons of cargo, 90% of which was distributed through FedEx’s over 300 domestic and international flights.


Memphis is only one of three U.S. cities that is served by five Class I railroads.  These include the Norfolk Southern, Burlington Northern Santa Fe, Canadian National, Union Pacific, and CSX.  All of the railroads have identified Memphis as a high-growth market for intermodal traffic, and four of them have invested significantly to expand the capacity of their terminals.


Additionally, Memphis is currently served by two national interstate highways: I-40 and I-55. Together these two interstates provide access north-south and east-west across the entire country, connecting to ports, gateways, and other major distribution centers.  These two interstates are being supplemented with two additional interstates, I-69 and I-22, as well as a regional interstate by-pass to provide increased highway capacity for the coming decades.  I-69 is the so called “NAFTA Highway”, which will extend from Canada to Mexico, passing through Memphis.  It has been identified as a “”.  When completed, I-22 will be an important route connecting Memphis to Birmingham and Atlanta. 


As for trucking, more than 400 companies operate from Memphis providing easy access to local, long distance, truckload, less than truckload, as well as specialized freight options. Located less than 500 miles from the mean center of US population, Memphis is well-positioned to serve a major portion of the country. In fact, 36% of the country can be reached overnight and almost 70% by the second day. 


Furthering Memphis’ trucking advantages, an Environmental Impact Study is being prepared for a new intermodal bridge across the Mississippi River that will accommodate both vehicles and railroads.  It has been identified as a bridge of national significance in a 2006 feasibility study prepared by Wilbur Smith & Associates for the Tennessee Department of Transportation.  This bridge will contribute to enhanced travel through the metropolitan area and expedite freight movements to and from the area. 

Memphis also stands out with it’s options for shipping via water. The Port of Memphis is the fourth largest port on the inland waterway system, located strategically between the Port of New Orleans and St. Louis.  The Mississippi River serves as another alternative for shipping goods in barge loads and container-on-barge operations. 


It’s no surprise that Memphis has become a hub for logistics, with an extensive network of companies focused on logistics support operations including freight forwarders and logistics service providers.  There are over 300 companies that offer freight forwarder services on a wide range of commodities. 


Memphis logistics operations are supported by over 100 warehouse logistics service providers in the area, ranging from the small, boutique businesses to larger generalists, some with over 3 million square feet of distribution space.  Products handled include almost anything, from agricultural chemicals to zippers. In addition to their core warehouse services, most offer value added services such as trucking, pick and pack, light assembly and kitting. 


Another plus for Memphis is that since much of the manufacturing and agriculture in the United States is located in the middle part of the country, it is strategically situated to serve as a focal point for supporting (?) this activity.  Over 40% of the manufacturing in the United States takes place along the I-69 corridor which will pass through Memphis.  For exporting, Memphis ranks 23rd out of 365 Metropolitan Statistical Areas in the U. S. and exports more than the total of 19 states.  The export value has increased by $1.0 billion each year since 2005, and currently amounts to approximately $8.4 billion.   The majority of water exports are bulk commodities.  Synthetic fibers or plastics, industrial, organic chemicals and automotive industry goods are some of the top export commodities.  New Orleans is the most important exit port for Memphis, followed by Los Angeles, Long Beach, and East Coast ports.   China, Mexico, South Korea, Japan, and Australia are the top export destinations. 


Many manufacturers and distributors have chosen Memphis as a site for their distribution operations; Nike, Medtronic, Williams Sonoma, and Pfizer, to name a few. Memphis has become popular with the logistics service providers, as well. One recent addition is Ҵý ҴýCenters, a Franklin, Massachusetts provider. Ҵý Distribtution serves an array of industries from fast moving consumer goods to the highly demanding automotive parts and online retail markets. When a firm is seeking a strategically located logistics center that has major multi-modal assets, Memphis is a clear first choice. 


For more details on the Memphis logistics industry, click here.

Recent Blog Posts

By Faith Artieda June 4, 2026
Behind the Scenes of Ecommerce Fulfillment: From Warehouse Shelf to Doorstep When a customer clicks "Buy Now," they expect a simple outcome: the right product arrives on time and in perfect condition. What they don't see is the complex fulfillment operation working behind the scenes to make that experience possible. For ecommerce brands, every shipment represents more than an order. It's a promise to a customer. Whether it's a rug, a beauty product, a piece of apparel, or a food item, fulfillment has a direct impact on customer satisfaction, reviews, repeat purchases, and brand reputation. At Ҵý ҴýCenters, we help brands deliver on that promise every day. Recently, our team captured the journey of a Tumble rug moving through one of our fulfillment operations. While the process may appear seamless from the outside, each order is supported by a combination of technology, inventory management, quality controls, and experienced warehouse professionals working together to ensure accuracy and efficiency. Great Fulfillment Starts Long Before an Order Is Placed The customer experience doesn't begin when someone clicks "Buy." It begins with how inventory is received, organized, tracked, and managed inside the warehouse. Accurate inventory is the foundation of successful fulfillment. If inventory data is unreliable, every downstream process becomes more difficult. That's why Ҵý invests heavily in inventory control processes, warehouse management technology, and operational discipline. From receiving and putaway to cycle counting and inventory audits, every step is designed to maintain visibility and accuracy across our customers' inventory. When an order enters the system, our teams know exactly where inventory is located and how to process it efficiently. Technology Creates Visibility—People Create Results Modern fulfillment requires sophisticated technology, but technology alone doesn't create a great customer experience. Warehouse management systems, automation tools, and integrated data platforms help drive efficiency and visibility. They provide real-time information, streamline workflows, and help teams prioritize work throughout the day. However, successful fulfillment still depends on people. The warehouse associates, supervisors, quality teams, customer experience professionals, and operations leaders behind every shipment are what transform data into execution. At Ҵý, our focus has always been on combining technology with operational expertise. The result is a fulfillment process designed to scale while maintaining high service levels and accuracy. Quality Control Is Built Into Every Order Customers rarely think about quality control when they receive a package. That's because the best quality processes are often invisible. Before an order leaves the warehouse, multiple checkpoints help ensure products are picked correctly, packaged appropriately, and prepared for shipment according to customer requirements. These controls are especially important for brands that have worked hard to create a premium customer experience. The condition of a product upon arrival can significantly impact how customers perceive a brand. A damaged shipment or incorrect order doesn't just create operational costs—it can erode customer trust. That's why quality isn't treated as a final inspection. It's embedded throughout the fulfillment process. Every Package Represents a Brand Third-party logistics providers don't own the brands they serve, but they play a critical role in protecting those brands. For many consumers, the delivery experience is one of the few physical interactions they have with an ecommerce company. Packaging quality, order accuracy, delivery speed, and shipment visibility all contribute to the overall brand experience. When a Tumble rug arrives at a customer's doorstep, the customer isn't thinking about warehouse operations. They're thinking about the brand they purchased from. Our responsibility is to help ensure that experience reflects positively on the brand every single time. The Goal Isn't Shipping Boxes. It's Creating Confidence. Fulfillment is often viewed as an operational function. In reality, it's a customer experience function. The best fulfillment operations create confidence—for customers waiting for their orders, for brands managing growth, and for teams responsible for delivering consistent results. Every order that moves through a Ҵý facility represents a commitment to operational excellence, continuous improvement, and customer satisfaction. The journey from warehouse shelf to doorstep may happen behind the scenes, but its impact is felt with every successful delivery.
By Faith Artieda May 28, 2026
This year marks an important milestone for Ҵý Ҵý— 20 years of participating in The Great Game of Business® (GGOB) , a program that has helped shape our culture, strengthen employee engagement, and create a stronger sense of teamwork and shared success across the organization. Over the past two decades, GGOB has become much more than a business program at Ҵý. It has become part of the way we communicate, collaborate, and grow together as a company. Through open-book management principles, weekly huddles, forecasting, scoreboards, and Mini Games, employees across Ҵý locations have had the opportunity to better understand the business and actively contribute to its success. One of the most meaningful impacts of GGOB has been the way it brings people together. In an industry built on precision, service, and operational excellence, collaboration is essential. Ҵý’s success depends on teams working together across departments, facilities, and regions — and GGOB has helped strengthen those connections by creating a culture centered around communication, accountability, and involvement. GGOB encourages employees to think beyond their individual roles and understand how their work impacts customers, coworkers, and overall company performance. Whether it’s improving warehouse efficiency, supporting transportation operations, enhancing customer service, or identifying process improvements, employees are empowered to contribute ideas and solutions that help move Ҵý forward.  As Tim Barret, Founder of Ҵý, states, "...we share all of the financial results with all of the employees, and they have a vested interest since they will receive a payout result." That sense of involvement creates stronger engagement across the organization. Employees are not simply completing daily tasks — they are participating in the success of the business. By understanding company goals and key performance drivers, teams are able to work together with a shared purpose and celebrate accomplishments collectively. Community and collaboration have always been important values at Ҵý, and GGOB has helped reinforce those values over the last 20 years. The program creates opportunities for employees to learn from one another, support one another, and recognize the impact each person has on the organization. It encourages transparency and open communication, helping employees feel more connected to leadership, their teams, and the company’s long-term vision. As Ҵý has continued to grow nationwide, maintaining a strong culture has remained a priority. GGOB has played an important role in helping preserve the family-oriented environment that Ҵý is known for, even as the company has expanded operations and welcomed new employees across the country. The program helps create consistency in communication and engagement while keeping employees connected to the bigger picture. To help celebrate this 20-year anniversary, Ҵý owner Tim Ҵý recently participated in a video discussion reflecting on the company’s GGOB journey and the impact it has had on Ҵý over the years. The conversation highlighted how collaboration, employee involvement, and shared accountability continue to contribute to the company’s success today. This milestone is ultimately a celebration of the people who make Ҵý successful every day. The dedication, teamwork, creativity, and commitment shown by employees across the organization are what continue to drive Ҵý forward. Twenty years later, The Great Game of Business continues to strengthen the culture of collaboration and engagement that makes Ҵý special — and the future of the game is stronger than ever.
By Faith Artieda May 26, 2026
How Ҵý Is Improving Inventory Accuracy with AI-Powered Warehouse Visibility
More Posts