Asia Business Channel

FedEx Opens new Shanghai Hub and prepares for an expansion of eCommerce in Asia

FedEx, the international delivery company, has just opened its new 1.4 million square foot Shanghai Pudong International Airport hub. The new hub is now considered as the largest of its kind in the FedEx network and is installed with the latest technology for sorting packages.

The hub also has dedicated areas for entry-exit inspection and quarantine to speed the customs clearance process and contains temperature controlled storage areas that will allow the company to process agriculture, flowers, foods and other perishables. Additionally, the facility and systems have been designed so that it can send real-time information such as shipment and flight status to its customers’ through their mobile smartphone devices.

FedEx opened the new facility with the expectation that China’s growth in online shopping and other logistic and supply chain transactions will continue to grow. Air cargo volume in China has grown steadily together with the demand of cross-border eCommerce market. According to China’s Civil Aviation Administration, China’s air cargo volume is projected to increase by at least 6.2 % in 2018, which will be the largest gain in the past 7 years.

David Cunningham Jr. Chief Executive Officer of FedEx Express said ... “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.” 

China’s growing demand for cross-border eCommerce has increased for the past 10 years, and many international delivery companies are now attempting to to reorient their operations to provide additional focus on the Chinese Market. FedEx has been active in China since 1995 through an acquisition from Evergreen International Airlines. Under this authority, FedEx became the sole U.S.-based, all-cargo carrier with aviation rights to China, the world’s most populous nation. Currently the company operates 66 flights in and out of the Shanghai hub each week.

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