FedEx Express has increased capacity between South Korea and Europe in response to an export boomdriven by a new free trade agreement.
The integrator has deployed an A300-600 freighter, with about 50 tonnes capacity, on theexisting route from Incheon airport into Europe via the Asia-Pacific hub in Guangzhou, China. Theten times per week service was previously operated with an A310-300F, with about 37 tonnescapacity.
The new aircraft deployment was launched in Guangzhou and a number of key locationsthroughout Europe, Middle East and Africa. This latest enhancement is expected to assist in meetingthe increased demands for logistics services in Asia-Pacific and Europe. In addition, FedEx plansto deploy the new freighters in the FedEx AsiaOne network, which connects major cities in Asiawithin 24 hours.
The near-33 per cent capacity increase reflects escalating demand for logistics servicesbetween South Korea and Europe following the implementation of a new bilateral Free TradeAgreement, FedEx said. The EU-South Korea FTA, the first between the EU and an Asian nation,entered force on July 1, 2011, according to the European Commission.
“FedEx looks closely at global trade performance, responding to customer needs in a timelyand proactive way,” said David L. Cunningham Jr., president, Asia Pacific, FedEx Express. “Despitethe challenging economic environment in Europe, Asia remains a strong trading partner with the EU.With this latest service enhancement, FedEx is equipping its customers with enhanced capacity andflexibility.”
Trade between Korea and the EU showed 26 per cent year-on-year growth in the first fourmonths in 2011, according to Eurostat figures. South Korea exported €38.7 billion worth of goods toEurope in 2010, while European exports to the country were worth €28 billion, according to theEuropean Commission.
Trade volume between Korea and the European Union subsequent to the FTA effectuation isexpected to increase $4.65 billion per year, and the quantity of goods transported by air isanticipated to increase up to 20 per cent as a result, according to research released from KIEP(Korea Institute for International Economic Policy).
