What is a hub in logistics?

A hub is a central transshipment point in logistics where goods flows are bundled, sorted, and distributed for onward transport. Hubs play a crucial role in modern logistics chains, especially in air freight, parcel logistics, and distribution networks. They enable the efficient and cost-effective handling of large shipment volumes by optimizing transport routes and shortening delivery times.

How a hub works

The hub principle is based on a central hub concept: instead of transporting goods directly from the sender to the recipient, they are first transported to a central hub, sorted there, and then forwarded to their destination. This reduces the number of direct transports and improves the utilization of transport resources.
A typical example is the hub-and-spoke system, which is mainly used in air freight and parcel logistics. In this system, the hub acts as the main transshipment point (central office), while the individual locations (spokes) are connected to the hub.

Areas of application for hubs

• Parcel and courier services: Companies such as DHL, UPS, and FedEx operate large logistics centers for the rapid sorting and distribution of shipments.
• Air freight logistics: Major airports such as Frankfurt and Paris serve as hubs for international cargo flights.
• Shipping and rail logistics: Ports and freight stations act as central transshipment points for combined transport.

Advantages of a hub

• Efficient transport routes: fewer direct connections and better capacity utilization.
• Faster delivery times: through optimal sorting and bundling of goods.
• Cost savings: fewer individual trips and higher utilization per means of transport.
• Better planning: logistics processes can be optimized and bottlenecks avoided.