FEDEX Express is expanding flight operations between Asia and Europe by 50 per cent during the holiday season to better serve small- and medium-sized shippers.
The move comes as average spot rates have remained above US$5.00 per kilo since early November, according to the TAC Index.
The capacity expansion is owing to strong package volumes linked to growing e-commerce shopping, FedEx Express said in a statement. A total of 300 flights in and out of FedEx Express' Asia-Pacific hub in Guangzhou, China, have been added during the holiday season as a result.
Average spot rates were already rising ahead of the holiday season as new products from Apple, Samsung, and Sony competed for space with general air cargo and personal protective equipment. Rates between Hong Kong and Europe climbed 9.57 per cent to $5.61 per kilo from November 30 to December7 after falling 6 per cent to $5.12 per kilo the week prior.
The additional capacity for the holiday season comes after FedEx Express expanded flight operations out of its Asia-Pacific hub by 50 per cent in May and June owing to manufacturing and businesses reopening across the Asia Pacific, Middle East, and Africa region, reports IHS Media.
FedEx Express' Guangzhou hub upgraded its business-to-business cross-border e-commerce export services including simplifying the declaration process, priority inspection, returns account management, and allowing customers to export in batches according to a September 9 company statement.
The holiday season demand is also impacting FedEx Express along the trans-Atlantic trade lane. To address this demand, Etihad Cargo is flying on behalf of FedEx Express between Memphis and London. Confirming the Etihad Cargo and FedEx Express relationship, a FedEx Express statement noted, 'FedEx Express continually evaluates our network and makes appropriate enhancements to serve our customers best.'
The lack of global air capacity remains a challenge, according to the International Air Transport Association (IATA). The group notes that despite dedicated freighters increasing capacity and utilisation rates this year, it is still not enough to offset the overall capacity decline owing to the drop in belly cargo capacity from passenger airlines.
SeaNews Turkey
The move comes as average spot rates have remained above US$5.00 per kilo since early November, according to the TAC Index.
The capacity expansion is owing to strong package volumes linked to growing e-commerce shopping, FedEx Express said in a statement. A total of 300 flights in and out of FedEx Express' Asia-Pacific hub in Guangzhou, China, have been added during the holiday season as a result.
Average spot rates were already rising ahead of the holiday season as new products from Apple, Samsung, and Sony competed for space with general air cargo and personal protective equipment. Rates between Hong Kong and Europe climbed 9.57 per cent to $5.61 per kilo from November 30 to December7 after falling 6 per cent to $5.12 per kilo the week prior.
The additional capacity for the holiday season comes after FedEx Express expanded flight operations out of its Asia-Pacific hub by 50 per cent in May and June owing to manufacturing and businesses reopening across the Asia Pacific, Middle East, and Africa region, reports IHS Media.
FedEx Express' Guangzhou hub upgraded its business-to-business cross-border e-commerce export services including simplifying the declaration process, priority inspection, returns account management, and allowing customers to export in batches according to a September 9 company statement.
The holiday season demand is also impacting FedEx Express along the trans-Atlantic trade lane. To address this demand, Etihad Cargo is flying on behalf of FedEx Express between Memphis and London. Confirming the Etihad Cargo and FedEx Express relationship, a FedEx Express statement noted, 'FedEx Express continually evaluates our network and makes appropriate enhancements to serve our customers best.'
The lack of global air capacity remains a challenge, according to the International Air Transport Association (IATA). The group notes that despite dedicated freighters increasing capacity and utilisation rates this year, it is still not enough to offset the overall capacity decline owing to the drop in belly cargo capacity from passenger airlines.
SeaNews Turkey