# Hub and Spoke Distribution Networks

*Last updated: 2026-06-24*

> Hub-and-spoke distribution networks come into play whenever freight from many dispersed origins needs to be consolidated before reaching its final destination.

Hub-and-spoke distribution networks come into play whenever freight from many dispersed origins needs to be consolidated before reaching its final destination. Shipments collected at peripheral pickup points (spokes) flow first to a central sorting facility (hub), where they are consolidated and sorted, then distributed outward via regional delivery points to consignees. Concentrating volume on the trunk lanes between hubs drives load factors high enough to make operations cost-efficient—something direct point-to-point routing between every origin-destination pair could not achieve. Air cargo networks, where major airports function as sorting hubs, and national parcel carriers are the most prominent examples. The inherent trade-off is the additional handling time and cost at the hub, which is why direct services often remain more economical for time-critical shipments or heavy individual consignments.

**Source:** [https://en.wikipedia.org/wiki/Hub_and_spoke_distribution_system](https://en.wikipedia.org/wiki/Hub_and_spoke_distribution_system)

## Quick Facts

| Property | Value |
|---|---|
| Term | Hub and Spoke Distribution Networks |
| Language | EN |
| Word count | 126 |
| Last updated | 2026-06-24 |
| Source | https://en.wikipedia.org/wiki/Hub_and_spoke_distribution_system |

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