Opportunities in China | FedEx: Strengthening its presence in China, China's air cargo market still has growth potential
楚一帆
发表于 2023-11-8 09:11:36
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FedEx is full of confidence in the Chinese market and will support China's sustainable development with a long-term perspective and strategy. We will continue to enhance our layout in the Chinese market, continuously improve our service capabilities and efficiency, support China in strengthening its connection with the global market, and support key areas of China's economic and social development, growing together with the Chinese market on the development track
On November 5th, the 6th China International Import Expo officially opened. Chen Jialiang, Senior Vice President of FedEx and President of China, made the above statement in an exclusive interview with Pengpai News during the Expo.
FedEx is one of the largest express transportation companies in the world, providing express services to over 220 countries and regions through its global air and land transportation network, connecting markets that account for over 99% of the global gross domestic product. FedEx has a development history of nearly 40 years in China.
When it comes to China's investment in the market, Chen Jialiang stated that since launching its business in China in 1984, FedEx has achieved remarkable development in the Chinese market, and China has become one of the fastest growing and most promising regions for FedEx's international business. Since this year, FedEx has achieved considerable development in the Chinese market. At present, FedEx operates more than 300 international round-trip flights every week in Chinese Mainland, enhancing connectivity with North America and Europe for customers in China and the Asia Pacific region.
It is reported that FedEx's infrastructure construction in China mainly includes the Asia Pacific Transit Center, Shanghai International Express and Freight Center, and four international port operation centers located in Guangzhou, Shenzhen, Beijing, and Shanghai, providing customers with fast and reliable international express delivery and domestic services.
Since the beginning of this year, FedEx has continuously strengthened its network layout and infrastructure construction in China, added new cargo flights to shorten turnaround time, and deepened cooperation with the local market. In terms of optimizing its operational model and service network, FedEx has optimized and upgraded its products to enhance the connectivity between China and the global market.
Specifically, this year, FedEx also signed a memorandum of understanding with the Guangzhou Municipal Government to deepen strategic cooperation, and established a strategic cooperation relationship with the Xiamen Municipal Government to further expand e-commerce logistics services and enhance the position of the two regions in the international logistics industry. In terms of services, FedEx has resumed international economic express delivery services, upgraded international priority express delivery services, officially declared goods export services in South China, and goods export services in East China. The transportation time for such goods exported by customers in South China to the Americas has been reduced by at least one day, and the transportation time for goods exported from East China to some Asian countries or regions can be reduced by up to one day.
Chen Jialiang stated that FedEx will further strengthen its logistics network layout in China, expand its service network to more second and third tier cities, and plan to build a stable supply chain through efficient, reliable, and abundant transportation capacity. In addition, FedEx will respond to global trade trends and Chinese market demand, continuously improve its service capabilities and delivery efficiency in core areas such as e-commerce and cross-border e-commerce, support small and medium-sized enterprises in expanding overseas business, and inject momentum into global economic development.
The Chinese air cargo market still has growth potential. In response to industry fatigue such as slowing cargo volume growth and normalizing freight rates, Chen Jialiang told Pengpai News that although the global air logistics market is facing challenges, it has shown a positive trend, and the role of the air transportation industry in ensuring supply chain stability, assisting manufacturing development, and economic recovery and prosperity is becoming increasingly important.
According to regular data on the global air cargo market released by the International Air Transport Association (IATA) in October this year, with the arrival of the traditional year-end peak season for air cargo, the market will show a more optimistic trend.
It is worth noting that FedEx is also actively reducing costs and increasing efficiency, promoting digital transformation measures, and thus addressing potential industry challenges.
FedEx aims to enhance the company's long-term profitability, one of the ways is through business optimization to improve the efficiency of the transportation department, reduce management and support costs, and achieve digital transformation. At the same time, we are particularly concerned about the quality of revenue. "Chen Jialiang said that its cost reduction, efficiency improvement, and transformation measures have already begun to pay off, and FedEx will continue to improve its profitability in the future.
The CIIE has created opportunities for the logistics industry, becoming a 'bridge' for promoting Sino foreign cooperation and exchange, as well as a major platform for trade exchange. "Regarding the spillover effects of the CIIE, Chen Jialiang said that the CIIE provides the logistics industry with an opportunity to understand trade development trends, help the industry improve efficiency and service capabilities, explore green development paths, and create a competitive and stable global supply chain ecosystem.
Chen Jialiang further stated that FedEx participated in the first CIIE as early as 2018. Through the CIIE platform, FedEx can showcase industry-leading logistics solutions and innovative capabilities to domestic and foreign buyers, introducing the company's deep business areas. At the same time, this is also the best platform to gain insight into future market development trends and formulate forward-looking and targeted development strategies.
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