Fedex relocates freighter aircraft to support the growth of intra Asia trade

Fedex Corp. has expanded its intra Asia air network with two new routes, adding additional capacity and transport options for regional loaders, as it reduces aircraft to high -demand areas in response to the decrease in the volume impacted by Asian rates to the United States.

The movement occurs immediately after a similar decision of rival UPS to increase flight frequencies and reposition larger freighters on certain routes within Asia.

Fedex (NYSE: FDX) reduced the activity of freighters outside Asia to the United States by 25% in the fiscal quarter that ended on August 30 because the high rates imposed this year by the United States government agreed the direct retail demand to the consumer, executives said about the company’s profit call last month. The company reported a gain of $ 150 million for small income from China due to the elimination of tax -free minimis treatment for low -value electronic trade shipments, which are now subject to two -digit import rates.

On Tuesday, Fedex announced the introduction of a weekly flight that connects the Incheon International Airport in Seoul, South Korea, with Hanoi, Vietnam. From Hanoi, the flight will go to the center of Asia-Pacific de Fedex in Guangzhou, China, a transhipment point for flights in Asia and Europe. The new flight will reduce traffic times for one day for shipments from northern Vietnam to Asian and European destinations.

The express carrier has also launched a direct flight between Seoul and Taiwan, which operates seven times a week, in a key commercial lane for high -tech products and electronic commerce. The new service supports customers as CJ Olive Young, a leader of health and beauty in South Korea, which aim to reach new international markets, Fedex said. (Fedex is also providing end -to -end logistical support for Olive Young’s recent expansion to the United States, selling directly to consumers on their electronic commerce platform).

The Vietnam route uses a Boeing 767 freighter, while the Taiwan route uses mainly MD11 and a Boeing 777 on Sundays, said spokesman Jonathan Lyons.

“Asia’s commercial panorama is quickly evolving,” said Kawal Preet, president of Fedex Asia Pacific, in a press release. “We are responding strategically investing in our network to create stronger connections for companies within the region and unlock new roads for growth, driven by the need to adapt to the diversification of supply chains, the increase in regional economies and an electronic commerce panorama that is restarted by changing the behaviors and dynamics of the market.”

Fedex said that the new air load lanes meet a growing demand in a region that experiences strong commercial growth of electronic commerce before the maximum Christmas shopping season and changing commercial flows. High value technology exports of Southeast Asia are also increasing. Intra-Asia trade represented almost 60% of the total exports of Asia, according to a United Nations report, and ASEAN countries have become the largest shopping partner in China, with a bilateral trade that reaches $ 963 billion in 2024, as shown by the figures of the Chinese government.