Consultant’s Insight: UPS, FedEx eye further growth in Asia-Pacific region

As U.S. parcel volumes remain low and international demand erratic, FedEx and UPS are investing heavily in the Asia-Pacific region to take advantage of intraregional and global demands. [caption id="attachment_76185" align="alignright" width="298"] Cathy Roberson, Cargo Facts Consulting senior consultant and Air Cargo Next columnist[/caption] "We're making improvements to our speed and capabilities in the Asia-Pacific region,” UPS stated in an April release. “In fact, we've committed over $250 million since 2023 — upgrading our express, supply chain and health care logistics services and expanding operations at Clark International Airport [(CRK)] in the Philippines." Recent investments include launching its UPS Premier service in China. The service combines tracking, prioritization and recovery for time- and temperature-sensitive health care shipments. Also, UPS announced expansion plans at Hong Kong International Airport (HKG) in December 2023 and launched a new flight connecting the company's intra-Asia hub in Shenzhen to Australia’s Sydney Kingsford Smith Airport (SYD) in April. FedEx expands APAC ops While FedEx has not stated the amount it has committed to the region, it too is investing across the region. Most recently, it signed an agreement with Luzon International Premiere Airport Development , operator and manager of CRK, to expand and upgrade the company's gateway in the Clark section of Pampanga, Philippines. A new facility will more than double FedEx’s footprint there and will include space to support the growing demand for e-commerce , freight and cold-chain shipments across the Asia-Pacific region. FedEx Express launched two flights to the United States from Qingdao and Xiamen, China, in June. The company also plans to establish international gateway facilities at each location to enhance operational and clearance efficiency, responding to local customers' increasing business and trade demands. "The launch of these two new cargo flights is a proactive move by FedEx to meet the growing demand of China's foreign trade and deepen cooperation with the local market," Poh-Yian Koh , vice president of operations at FedEx China, said in a June release. "The new flights will effectively enhance connectivity between China's major second- and third-tier cities and the Asia-Pacific and North American markets, enabling local enterprises to better connect to the global market.” Growing leadership in APAC FedEx recently promoted Koh to senior vice president and president of FedEx China, effective Aug. 1. In her new position, Koh will drive business expansion and growth for FedEx in China, fostering stronger cooperation with government entities, customers and partners, according to a July 9 release from FedEx. She will also optimize FedEx's network and capacity in the country while accelerating digitalization to increase service efficiency. FedEx Express is upgrading its Shenzhen Baoan International Airport (SZX) gateway facility in southern China, expanding its import warehouse to improve operations and customs clearance. FedEx Express also this year opened its new regional headquarters in Singapore to support operations in Asia Pacific, the Middle East and Africa. The Asia-Pacific region is home to many of the fastest-growing global economies, according to UPS. UPS and FedEx are expanding their networks, physically and digitally, to take advantage of the growing health care and e-commerce markets, as well as the more traditional manufacturing market. However, UPS and FedEx will face stiff competition from carriers such as China-based SF Express , which can offer similar services at a lower rate, as well as DHL Express , which has also made several recent investments in the Asia-Pacific region.

Consultant’s Insight: UPS, FedEx eye further growth in Asia-Pacific region

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