FedEx is upbeat about outlook for volume growth on Europe to Asia trade
FEDEX reported 'solid growth' on volumes transported from Europe to Asia this year, and said the eastbound trade from Europe was a major focus for the business globally
FEDEX reported 'solid growth' on volumes transported from Europe to Asia this year, and said the eastbound trade from Europe was a major focus for the business globally.
FedEx Express Europe president Bert Nappier told London's Air Cargo News that the Europe to Asia trade route 'represents an approximately US$8 billion market, and investments in our European road network through the TNT integration, our major hubs and our air fleet has meant we are facilitating more trade between European businesses and the APAC region,' he said.
'Trade on the [Asia to Europe] lane has been slower. However, we have viewed performance positively given the current economic and political challenges affecting the global economy.'
Mr Nappier said that growth in the eastbound direction is due to investments that FedEx has made in its own business and the rising importance of Asia Pacific for European companies, especially now that the European Union and Association of Southeast Asian Nations (ASEAN) are upgrading their relationship to a strategic partnership.
'The recent trade deal between Europe and Japan has created further positive backdrop to solid Europe-Asia trade, including creating the world's largest free trade zone (30 per cent of world GDP),' he noted.
In the opposite direction, the slowdown in Asia to Europe trade comes on the back of a range of political and economic factors, he said, including the US-China trade war and the overall slowdown of the Chinese economy.
Looking ahead, Mr Nappier said: 'Despite challenges facing the trading environment, we remain confident in our global network and in the future prospects for global trade.
'We are also focusing heavily on Europe, as the world's largest single economy with a vibrant SME community. Europe-Asia trade forms a key part of this strategy.
'The integration of the TNT road network is leading to faster service with greater reach for European businesses within the region.
'The investments we have made in our major air hubs in Liege and Paris have also created additional capacity and technological improvements that support the evolving needs of our customers, particularly with cross-border e-commerce, and the global marketplace,' he added.