Biology of Business

Memphis

TL;DR

Cotton port turned logistics capital. FedEx's 1973 gamble created North America's busiest cargo airport—475,000 shipments/hour, 40% of US overnight.

City in Tennessee

By Alex Denne

Memphis exists because the bluffs existed. Founded in 1819 on the high Chickasaw Bluffs overlooking the Mississippi River, the site offered the rare combination of flood protection and river access that made cotton trading possible. Andrew Jackson was among the founders, though like Jacksonville, the city would outlive its namesake's direct involvement. By the mid-1800s, Memphis was a critical cotton port—and when that economy collapsed after the Civil War, the city nearly died too.

What saved Memphis was music and then movement. Beale Street became the incubator of the blues in the early 1900s, attracting musicians from across the Delta and eventually spawning rock and roll, soul, and hip-hop. But the industry that truly transformed modern Memphis arrived on April 17, 1973, when FedEx launched 14 aircraft carrying 186 packages to 25 cities. Founder Fred Smith chose Memphis for its central location and underutilized airport—a hub where trucks, planes, rails, and barges all converged.

The 'FedEx effect' became Memphis's economic identity. Today the World Hub covers 880 acres and 3.7 million square feet, employing 32,000 people who process up to 475,000 shipments per hour through 140-150 nightly flights. Memphis International is North America's busiest cargo airport and the world's second-busiest after Hong Kong. Trucks leaving Memphis reach 40% of America overnight. The city is one of only four U.S. metros served by all five Class I railroads. The Port of Memphis ranks second on the Mississippi.

Memphis invented the modern overnight delivery network by accident of geography—the same central location that made it a cotton hub made it the natural center of American logistics. By 2026, Network 2.0 and automated sorting facilities will push throughput higher, betting that the city where packages pass through the night will remain essential even as supply chains shift. The blues made Memphis famous; FedEx made it indispensable.

Key Facts

7,848
Population

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