FedEx First to launch overnight delivery from India to China
FedEx Express, a subsidiary of FedEx Corp. (NYSE:FDX) and the world's largest express transportation company, today announced the launch of a new flight offering the first overnight express link between India and China.
The flight is part of a new eastbound around the world route–connecting Europe, India, China and Japan with the FedEx U.S. hub in Memphis–that will provide unprecedented access to and from the world's largest markets. Using a wide-bodied MD-11 freighter, FedEx will double its current capacity between Europe and Asia with the addition of 850,000 pounds per week.
"This new route will relieve mounting capacity constraints for international express service across Europe to Asia, especially the two powerhouse economies of India and China," said Michael L. Ducker, executive vice president-international, FedEx Express. "Furthermore, it is another 'FedEx first' as we provide the industry's first overnight express link between India and China. Our service from Delhi to Shanghai will benefit our customers, whose business is fueling this $14 billion trade route."
Economic integration between India and China is deepening rapidly. Last year, China became India's second-largest trading partner and India emerged as one of China's top ten Asian trading partners for the first time. Bilateral trade between the two nations is expected to exceed US $20 billion in 2008. The five weekly flights from India to China respond to India's vibrant economic growth.
"Indian exports to China have been growing at more than twice the rate of overall Indian exports for the last few years," said Gene Huang, FedEx chief economist. "This trend is expected to continue with the increasing growth of China's emerging middle class and consumer-focused culture."
Earlier this year, FedEx Express launched a westbound around-the-world route, which included the express air cargo industry's first direct flight from mainland China to Europe (Shanghai to Frankfurt). The new eastbound route complements the westbound around-the-world route, meeting supply and demand needs in both directions.
About FedEx Corp.
FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $29 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 250,000 employees and contractors to remain "absolutely, positively" focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more information, visit fedex.com.
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FedEx taps into Asia's trade boom
Financial Times, 12/9/05
Federal Express is targeting the booming trading partnership between India and China with the launch of air-freight services that will deliver cargo overnight for the first time between two of the world's fastest-growing economies.
The move by the world's largest logistics company will reduce the journey time for cargo and express courier services from Delhi to Shanghai from the current average of two to three working days, a boon for exporters as bilateral trade booms.
Indian exports to China, such as engineering and chemical products, have been growing at more than twice the rate of overall exports in the past three years.
Bilateral trade totals Dollars 14bn and is forecast to reach Dollars 20bn in three years. Exports from India crossed the Dollars 100bn mark recently; Asia accounts for Dollars 50bn of India's overseas trade of Dollars 185bn.
"This (new service) is a genuine lift for exporters on a route on which there were hitherto no direct flights," said Cyrus Guzder, chairman of the transport and logistics council at the Confederation of Indian Industry.
The first week's service started this month with daily flights from Delhi to Shanghai and Tokyo and on to the US, part of an expansion that has doubled the company's capacity between Europe and Asia.
Air cargo traffic is rising 22 per cent a year in India, with similar growth rates on distribution by sea. FedEx adding capacity has already softened cargo rates, cutting transit times and costs for businesses.
The strong India-China trade outlook has forced global logistics companies to step up their presence in India, where an estimated one-third of the domestic delivery market is in the hands of small owner-managed operators.
Last November, DHL, part of Deutsche Post, acquired control of Blue Dart, though the Mumbai-based cargo company continues to operate independently. DHL hopes to expand in Mumbai with a dedicated handling centre.
DHL, which claims a 60 per cent share of express international delivery of items such as documents out of India, says its business is growing 25 per cent a year.
"But growth is outstripping the pace at which infrastructure is improving," said Chris Callen, country manager for DHL Worldwide Express in India.
Logistics companies, for example, are severely constrained by the bureaucracy at Indian airports and the lack of automation at handling centres, which lengthens time to clear goods.
