Printable Version FedEx Express forecasts rapid integration of Chinese logistics into the global import-export market

“The question for companies today is not how does China integrate itself into the global supply chain but how do I integrate my business into China?” stated David L. Cunningham, FedEx Express’ Regional President for Asia Pacific, during a keynote speech he made at JP Morgan’s China Conference held in Beijing last year.

A recent McKinsey report suggests that by 2025 China will become the world’s third largest consumer market as it moves from being a “ Made in China ” to a “ Sold in China ” society.  Small to medium-sized businesses (SMEs), traditionally the motor for entrepreneurial growth worldwide, already account for more than 99% of all China’s enterprises, 55% of its GDP and 75% of its workforce. This sector of the Chinese economy is one in which FedEx has developed unrivalled expertise since its establishment in China over twenty years ago.

Aside from the normal resources and skills needed to initiate and successfully develop businesses, especially those dealing in international markets, SMEs in particular need access to excellent “ hard “ (roads, railways, ports) and “ soft “ (phone, internet, regulatory) infrastructure.  Above all, the potential of Chinese SMEs to take and increase their share of a growing global market depends upon their ability to manage a supply chain that spans the world and that guarantees them access to rapid, cost-effective air express services covering destinations across the nation, and across the globe.

The trend and speed of the development of trade with China is undoubtedly impressive.  In the three years to 2007, US exports to China alone grew by 75%.  

China now accounts for more than 30% of the trans-Pacific air cargo market and its overall air cargo market has grown at an average annual rate of almost 21% over the past twenty years. 

FedEx Express is well placed to build on its leading position in China’s airfreight market and to benefit from the continuing and remarkable growth of its economy.   In March 2007, FedEx completed the acquisition of its joint venture partner’s (DTW Group) share of the international priority express joint venture and DTW Group’s domestic express network. On 28^th May 2007, FedEx began offering domestic time-definite delivery service to satisfy customer demand in China. As a wholly owned foreign enterprise FedEx consolidated and enhanced its fast, cost-effective and seamless access for customers shipping to, from and within China. 

FedEx started operations in China in 1984 and has its headquarters in Shanghai.  It is now the leader in China’s air cargo industry and employs more than 6,000 staff throughout the country, serving its clients’ shipping and forwarding needs via 126 drop-off locations and 111 separate stations in over two hundred towns and cities. Through FedEx Kinko’s it also operates out of eighteen locations in Beijing, Shanghai, Guangzhou and Shenzhen.  Its international business is routed through the Beijing Capital, Shanghai Pudong and Shenzen Bao’an Airports, while its domestic business utilises a hub based in Hangzhou Xiaoshan International Airport, located in East China’s Zhejiang Province. 

In addition to developing and improving services for its increasing client base, FedEx actively supports various nationwide initiatives focused on corporate social responsibility.  Since introducing the Safe Kids Walk This Way program to China in 2004, FedEx has helped over one million school children receive road safety training, with nearly 700 FedEx employees volunteering their time.  FedEx also partners with ‘Hands On Shanghai’, a non-profit organization, for the Adopt a Schoolprogram, which encourages FedEx employees to provide educational support to the children of migrant workers in Shanghai. Since it was established in September 2007, more than 100 FedEx employees in Shanghai and neighbouring cities have volunteered to go to an assigned school every Saturday to teach a set curriculum and participate in field trips.

FedEx is proud that its involvement in China’s rapidly growing economy for more than two decades also gives it the opportunity to contribute to a variety of national and community development programs.

For more information about FedEx services to China, please contact our Customer Service at 08456 07 08 09 or have a look at fedex.com/gb.  For more information about the FedEx commitment to community development and relief aid programs click here.