FedEx Express Launches the First Route Connecting Guangzhou, China and Memphis, Tennessee, U.S.A.

FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX) and the world's largest express transportation company, announced the launch of a new route which, for the first time, connects the FedEx APAC Hub in Guangzhou, China and the FedEx World Hub in Memphis, Tennessee, U.S.A.

Currently, a FedEx Express MD-11 freighter is being used for the new route but it will be replaced with a B-777 freighter in May to meet increasing shipping demand. The new route has five flights per week from Tuesday to Saturday.

In April, the flight departing from Guangzhou stops in Osaka, Japan and Anchorage, Alaska, U.S.A. Beginning in May, the flight from Guangzhou will stop in Osaka before flying directly to Memphis. From Tuesday to Friday, the flight returning from Memphis stops in Indianapolis, Indiana, U.S.A. and Anchorage before flying directly to Guangzhou, while the Saturday flight stops in Honolulu, Hawaii, U.S.A. and Anchorage.

"As our business continues to develop across the Asia Pacific region, we constantly adjust our network and routings to better meet dynamic market needs," said Karen Reddington, president, Asia Pacific, FedEx Express. "Adding volume and a faster, more direct connection to our Memphis World Hub will give Asia Pacific businesses a stronger competitive advantage in connecting to customers in North America and beyond."

The Asia Pacific region is predicted to grow at a rate of 6.5% in 2018, 2% faster than the projected global growth rate[1]. Boeing forecasts that air cargo flowing from Asia to North America is expected to increase by 4.7% per year over the next 20 years.[2] In addition, Guangdong province, where the APAC Hub in Guangzhou is located is one of China's major trade centers. In 2017, Guangdong's total import and export value of goods grew by 8% year-on-year, while the total import and export value with the United States grew by 10.4% year-on-year.[3]

FedEx Express launched two new routes last year - one connecting Liège, Belgium and Memphis, with stops in Seattle, Washington, U.S.A.; Anchorage; and Shanghai, China, and another linking Shanghai and Oakland, California, U.S.A. Early this year, FedEx Express officially opened its FedEx Shanghai International Express and Cargo Hub, the second international hub in China.

Currently, FedEx operates more than 250 flights per week in China, with more than 160 of these flights going through the FedEx APAC Hub.

[1] World Economic Forum, This is how China's economy has changed in the last 10 years, June 22, 2016

[2] Boeing, World Air Cargo Forecast 2016-2017, October 2017

[3] Guangdong Statistics