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FedEx relocates freighter aircraft to support intra-Asia trade growth
Yahoo Financeยท 2025-10-03 16:50
Core Insights - FedEx has expanded its intra-Asia air network by adding two new routes to enhance capacity and transportation options for regional shippers, responding to tariff-related volume declines from Asia to the U.S. [1][2] - The company reduced freighter activity from Asia to the U.S. by 25% in the fiscal quarter ending August 30, resulting in a $150 million profit impact due to reduced revenue from China [2] - New weekly flights connecting Incheon International Airport in Seoul to Hanoi, Vietnam, and a direct flight between Seoul and Taiwan have been introduced to support high-tech and e-commerce trade [3][4] Company Strategy - FedEx is strategically investing in its network to strengthen connections within Asia, driven by evolving trade dynamics, rising regional economies, and changing customer behaviors in e-commerce [5] - The new air freight lanes are designed to meet the growing demand in a region with strong e-commerce trade growth ahead of the holiday shopping season [5] Market Context - Intra-Asia trade constitutes nearly 60% of Asia's total exports, with ASEAN countries becoming China's largest trade partner, achieving bilateral trade of $963 billion in 2024 [5]