FedEx strengthens capabilities in AMEA region to power holiday shipping

Fedex Chief Customer

FedEx Express has announced it has strengthened its network and e-commerce capabilities in preparation for another busy holiday season in the Asia Pacific, Middle East and Africa (AMEA) region.

The e-commerce boom accelerated by COVID-19 is expected to continue. Global online spending is estimated to increase by 11% year-on-year to $910bn during the upcoming holiday season. In Asia Pacific, a region that accounts for more than 60% of online retail sales, online shopping has already picked up. For example, China’s biggest online shopping festival – Singles’ Day – is expected to spur further growth of online retail across the rest of the AMEA region. In Southeast Asia, about 40% of e-tailers said festive season sales represent the bulk of their annual sales. In the Middle East and Africa, 22% of consumers are ready to shop online during Black Friday and Cyber Monday.

With the exponential growth of e-commerce, FedEx is expecting the 2021 peak season to meet or exceed the 2020 holiday season. Supply chain challenges, including ocean freight, are also adding to the demand for air cargo capacity as businesses replenish stock levels in time for the holiday season.

The company reported that in the AMEA region it has taken steps in response to forecasted holiday demand which include workforce additions, facility expansions, network optimization, and innovative e-commerce solutions to meet the needs of consumers.

The company reported the following changes:

  • Added capacity and facilities: FedEx has increased network capacity by adding six new intercontinental flights on high-demand lanes, connecting the Asia Pacific with the United States and Europe. These contribute to the total of 225 weekly flights the company operates in and out of the region, providing reliable and increased connectivity and resilience for the holiday season. FedEx opened a new gateway facility in Clark, the Philippines, in October to support the growing e-commerce demand of bulk shipments and large items coming in and out of Asia during the holiday season.
  • E-commerce expansion: FedEx launched FedEx Compatible and Alliance program by teaming up with leading e-commerce platforms across the Asia Pacific. The company hopes that the platform will provide e-tailers with instant access to e-commerce portfolios and affordable shipping solutions without switching platforms or accounts. The company also introduced a new time-defined shipping solution – FedEx International Connect Plus.
  • Visibility and personalized services: FedEx reported it has enhanced its FedEx Delivery Manager in anticipation of end consumers’ growing focus on the traceability of their holiday items and the increased preference for personalized delivery services. According to the company, the app allows customised delivery options, timings, and locations.
  • Increased Workforce: FedEx Corp and the operating companies plan to hire 90,000 new team members in the United States as part of its efforts to ensure there’s enough manpower to handle the peak surge.

FedEx Express AMEA region president Kawal Preet commented :“It’s never too early to plan ahead – shop early and ship early. This is especially true this upcoming holiday season with record-breaking shipping volumes on the horizon. In fact, nearly half (48%) of consumers worldwide plan to start their holiday shopping early this year, including 21% who had already started shopping in September”.

Source: FedEx