FedEx, UPS roll out new air cargo offerings

Industry bellwethers FedEx and UPS both announced service expansions for their respective air cargo offerings this week.

FedEx subsidiary FedEx Express launched a new dedicated 777F route connecting FedEx World Hub in Memphis, Tennessee to South Korea with four nonstop flights a week, according to company officials. They said that this new route combines faster service with larger cargo capacity, providing FedEx with the ability to deliver documents and packages from the U.S., Canada and select markets in Latin America to Seoul, South Korea in two to three business days.

The nonstop flight operates Monday – Thursday allowing FedEx to deliver documents and packages from the U.S., Canada and select markets in Latin America to Seoul, South Korea in 2-3 business days. Shipments from select markets in Latin America and Canada bound for South Korea arrive at the sort facility at the Memphis Hub where they can be loaded onto the flight outbound for South Korea. Shipments from major cities in Mexico, Brazil, Columbia, Argentina and Venezuela would be included in the 777 service to South Korea. International Priority Freight can be delivered in 3-4 business days.

And UPS launched four direct flights from Hong Kong to Europe this week, which, it said, enables the company to offer the widest next-day delivery package for packages and heavy freight to Europe from Hong Kong. UPS said it now offers 11 weekly flights form Hong Kong to Europe, which connect Hong Kong with Cologne, Germany Monday through Thursday on B747-400 aircraft. These flights will run in conjunction with seven weekly flights the company offers between Hong Kong and Cologne via Dubai.

UPS said the company now offers service to 34 European countries from Hong Kong with non-dutiable small package and letters service and 18 countries with dutiable small package service. And through the UPS express freight service, shipments can be delivered in one day to 18 countries and 39 cities across Europe, including Paris, Milan, Prague, Frankfurt, Madrid, Barcelona and Copenhagen.

In interviews with LM, representatives from both companies said the drivers for these rollouts started with meeting customers’ needs.

“FedEx is always monitoring emerging trade patterns and focused on meeting customers’ needs for solutions in international shipping,” said Sharon Young, FedEx Global Communications Advisor. “We continue to add more 777 Freighter aircraft to our fleet as it is a competitive advantage for our customers by enhancing our ability to move more freight in less time on flights between the U.S. and global markets.  The latest service anticipates growing trade and customer demand between the U.S. and South Korea. In 2010 over $38 billion of goods were exports from the US to South Korea, a significant 35% rise year-on-year. (US Census Bureau, Foreign Trade Statistics).”

Young added that the improved service and capacity to South Korea is being introduced so that customers in the U.S. and South Korea will be better able to compete in the global marketplace by tapping into trade opportunities as they arise.
She also pointed out that FedEx is a strong supporter of the proposed US-Korea Free Trade Agreement as it will benefit U.S. businesses by lowering tariffs for American goods and services in the dynamic South Korean market. When approved, the International Trade Commission estimates the Korea FTA will enhance US exports to South Korea by nearly $11 billion annually, and increase imports from Korea by over $6 billion.

As for UPS, Kristen Petrella, UPS Public Relations Manager, said UPS is always looking for ways to better serve its customers.

“We’d been studying and preparing for this day for about six months,” she said. “UPS felt there was market demand for next-day service from Hong Kong to Europe. And, it appears we were right. Our first plane took off [this week] from Hong Kong with a 100 percent load. We added these flights at the behest of technology, healthcare, auto and high-end retail customers.”

In terms of shipper benefits, Petrella explained that once UPS’s B747-400 aircraft lands in Cologne, it connects to the broadest European network of any competitor, allowing shippers to reach virtually any market using one logistics provider door-to-door.

“These new flights are set up to handle premium services,” she said. “They give our customers additional and faster delivery options. Rapid speed to market allows our customers to respond quicker to shifting market demands, and, in turn helps them to better serve their customers.”

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