Consultant Insight: FedEx Express opens INC gateway

FedEx Express expanded its Asia-Pacific capabilities by officially launching its new gateway at Incheon International Airport (ICN) in South Korea. With 31 weekly flights, the facility supports all shipments but places a special emphasis on e-commerce and cold chain. “With South Korea tracking as the fourth-biggest exporter in Asia [in 2021] and the world’s fifth-largest e-commerce market, the new Incheon Gateway will further boost our already extensive network to create possibilities for customers across the region,” Kawal Preet, president of the Asia Pacific, Middle East and Africa (AMEA) region at FedEx Express, said in a statement. [caption id="attachment_76185" align="alignright" width="298"] Cathy Roberson, Cargo Facts Consulting senior consultant and Air Cargo World columnist[/caption] “As trade lanes continue to diversify, businesses particularly across the North Pacific region will benefit from this newly opened facility as they continue to harness the full potential of global trade opportunities,” she added. The new facility is equipped with 78 conveyor belts and an automation sortation system that can sort up to 12,000 packages per hour. It also includes a 15,207-square-meter warehouse that can store up to 40,000 packages. To support cold-chain shipments — including samples for clinical trials and health care products such as vaccines, as well as perishable or temperature-sensitive items — FedEx Express expanded cold storage five times compared with a previous facility the new gateway replaced. It contains three separate chambers compliant with European Guidelines for temperature-controlled storage including freezer, cool and ambient rooms. The Incheon Gateway follows FedEx’s Clark Gateway in the Philippines which opened in 2020. Kansai International Airport (KIX) in Oasaka, Japan, serves as FedEx Express’ North Pacific hub. In 2021, FedEx Express’ year-over-year shipping volume from Osaka increased 16.5%, partially driven by the COVID-19 pandemic and related issues. As a result of growing volumes, FedEx added several new flights. In July 2021, the company launched a new route between Beijing (PEK) and Anchorage (ANC), via KIX, with 12 flights per week. Also in 2021, FedEx launched a flight between Paris (CDG) and KIX traveling on to Guangzhou, China, (CAN) as well as a new route that connects PEK to CDG via KIX with 10 flights per week. APAC investments FedEx noted in its annual global economic impact report published in October that it indirectly contributed to net economic output worth $3.8 billion across the AMEA region’s economy in FY 2022 — a 12% YoY increase. As part of its contributions, FedEx has made a number of investments in the APAC region, including: Establishing a direct presence in Cambodia; The January launch of DoraSorter, an AI-powered intelligent sorting robot at the FedEx Express South China E-Commerce Shipment Sorting Center in Guangzhou, China; The opening of a new $2 million international clearance gateway at Bangalore airport; and Consolidation and expansion of its multimillion-dollar hub at Delhi International Airport (DEL). The investments come as YoY volumes at FedEx Express increased from 2020 to 2021: up 54.8% from Japan to the U.S.; up 47.5% from Japan to Europe; up 37.4% from Japan to the Americas; and up 18.5% from Japan to the Middle East, India and Africa region. Outlook The investments are much needed as FedEx expands its worldwide network. However, they come at a time of global uncertainty as stakeholders reconfigure supply chains to a post-pandemic world. As such, FedEx finds itself in a cost-cutting situation, grounding 23 domestic and nine international flights, according to FedEx CFO Mike Lenz .

Consultant Insight: FedEx Express opens INC gateway

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