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Logistics Glossary

Hub: The Central Transhipment Point in a Logistics Network

A hub is the central transhipment point in a logistics network, where consignments from various regions arrive, are sorted and are distributed onto outbound transports heading in other directions. Hubs are the heart of modern forwarding and parcel networks – without them, comprehensive, economical delivery would be impossible.

Last updated · NexCargo GmbH

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At a Glance

Operation
Mostly overnight transhipment (01:00–05:00)
Capacity
Up to 500,000 consignments/night (major hubs)
Storage
None – purely a transhipment facility

How does a hub work?

Consignments from various regions (the spokes) are delivered to the hub overnight, sorted automatically and loaded onto outbound vehicles for other regions. This process – also known as cross-docking – runs to a tight schedule in narrow time windows. A high-performance hub can process several hundred thousand consignments a night.

Hub-and-spoke vs point-to-point

In the hub-and-spoke system all connections run via the central hub – economical and efficient where there are many customers and destinations. In a point-to-point network, direct connections operate without a hub – faster, but only economical where there is sufficient volume. Direct runs at NexCargo are an example of point-to-point transport.

Regional hubs and gateways

Alongside national main hubs, large forwarders operate regional depots that act as sub-hubs. Consignments travel from the main hub to the regional depot and from there to the consignee (last-mile delivery). International gateways are specialised hubs for cross-border consignments with customs clearance.

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