FedEx Opens Shanghai Hub, Prepares for A Surge On eCommerce in Asia

FedEx recently opened its 1.4 million square foot Shanghai Pudong International Airport hub on January 8. FedEx’s new hub is now considered as the largest of its kind, installed with the latest sortation technology temperature-controlled storage.

FedEx Corp. anticipates a growth in online transactions in China as the company opens its new hub in the country. Air cargo volume in China has grown steadily together with the demand of cross-border eCommerce market.

It is approximate that the value of goods to increase to at least 43 percent to $117 billion this year. China’s air cargo volume is projected to increase to at least 6.2 percent in 2018, which is now considered as the biggest gain in the past 7 years, according to China’s Civil Aviation Administration.

“There’s an opportunity to bring a lot of products and a lot of convenience to the Chinese consumers… With the wealth of Chinese consumers and the worldliness of Chinese consumers, they’re going to demand goods from the U.S. and Europe and parts all over the world,” David Cunningham Jr. Chief Executive Officer of FedEx Express

China’s growing demand for cross-border eCommerce

FedEx says that their latest facility can send real-time information such as shipment and flight status to its customers’ mobile smartphone devices. The hub also has dedicated areas for entry-exit inspection and quarantine to speed the customs clearance process.

China’s growing demand for cross-border eCommerce has generally increased for the past 10 years, urging carriers to reorient their operations to mainly focus on the Chinese Market.

United Parcel Service Inc. has now set up at least $10 million venture with SF Holding Co. in Hong Kong in May to cater to the growing demand of the Chinese Market. FedEx currently operates 66 flights in and out of the Shanghai hub each week.