# Hub and Spoke Model

*Last updated: 2026-06-24*

> Unlike point-to-point routing—where every origin connects directly to every destination—the hub-and-spoke model channels all freight through one central consolidation point and redistributes it outward along individual spokes.

Unlike point-to-point routing—where every origin connects directly to every destination—the hub-and-spoke model channels all freight through one central consolidation point and redistributes it outward along individual spokes. Carriers, parcel networks, and airlines favour this structure because it drives up vehicle utilisation and reduces fleet requirements considerably. At the hub, shipments are sorted, consolidated, and reassigned to outbound routes; the added transfer step slightly increases transit time but enables far more efficient load planning across the network. The model is especially effective where cargo volumes between any two peripheral points would not justify a direct service on their own. It differs from a mesh network, where every node connects to every other—fast, but resource-intensive at scale.

**Source:** [https://www.investopedia.com/terms/h/hub-and-spoke-distribution-model.asp](https://www.investopedia.com/terms/h/hub-and-spoke-distribution-model.asp)

## Quick Facts

| Property | Value |
|---|---|
| Term | Hub and Spoke Model |
| Language | EN |
| Word count | 115 |
| Last updated | 2026-06-24 |
| Source | https://www.investopedia.com/terms/h/hub-and-spoke-distribution-model.asp |

---

*Logistics Glossary — Freight Academy: [https://www.freight-academy.com/en/glossary/hub-and-spoke-model](https://www.freight-academy.com/en/glossary/hub-and-spoke-model)*

*Markdown mirror: [https://www.freight-academy.com/api/md/glossary/en/hub-and-spoke-model](https://www.freight-academy.com/api/md/glossary/en/hub-and-spoke-model)*

*JSON summary: [https://www.freight-academy.com/api/v1/glossary/hub-and-spoke-model/llm-summary?lang=en](https://www.freight-academy.com/api/v1/glossary/hub-and-spoke-model/llm-summary?lang=en)*