FedEx Corp. expects growing cross-border online transactions to be a driving force for its business in China as the company prepares to open one of its largest facilities in Shanghai.
“Absolutely that’s an important part of it,” David Cunningham Jr., chief executive officer of FedEx Express, the world’s largest cargo airline, said in an interview in Shanghai Monday. Cunningham said the city is a key leg of FedEx’s global cargo network, with more transshipments expected to flow into Shanghai in the future before being moved to other markets.
Air cargo volume in China has increased steadily as demand rises in the nation’s cross-border e-commerce market, where the value of goods is projected to climb 43 percent to 758 billion yuan ($117 billion) this year. As appetite for foreign products ranging from diapers to cosmetics to fresh produce expands among the emerging middle class, China’s air cargo volume is expected increase around 6.2 percent in 2018, after climbing 6.6 percent in 2017, the largest gain in seven years, according to the Civil Aviation Administration of China.
“There’s an opportunity to bring a lot of products and a lot of convenience to the Chinese consumers,” Cunningham said before the official opening of FedEx’s international express and cargo hub at the city’s Pudong International Airport later Monday. “With the wealth of Chinese consumers, and the worldliness of Chinese consumers, they’re gonna demand goods from the U.S. and Europe and parts all over the world.”