FedEx has broadened its service for e-commerce merchants in China, facilitating access to the US and European markets to leverage the surge in cross-border shipping, as announced by the company recently. The FedEx International Connect Plus service, previously available for merchants in mainland China for intra-Asia-Pacific shipments, has now been expanded. The service, designed for lightweight and less urgent packages, typically ensures delivery within two to three business days.
Riding the Wave of Cross-Border E-commerce Growth
The expansion comes as online shoppers increasingly demand goods manufactured in China. The country’s online retail sales witnessed a nearly 10% YoY growth in the first half of 2024, a demand surge that is straining air freight capacity and escalating shipping rates.
FedEx’s expansion of shipping options from China is a strategic move to capitalize on this trend. The company has seen demand for air cargo services from Asia surpass expectations and anticipates sustained momentum in this sector, as stated by Brie Carere, EVP and Chief Customer Officer at FedEx, during a recent earnings call.
Competitor UPS is also benefiting from the escalating cross-border e-commerce activity from Asia. UPS CFO, Brian Dykes, noted a more than 20% increase in export volume on the China-to-US trade lane in Q2 during a recent earnings call.
In this competitive landscape for cross-border e-commerce volume, FedEx is positioning its International Connect Plus as a cost-effective shipping option for merchants. The company highlights the service’s simple rate structure, absence of a residential surcharge, and seamless integration on its website.
