Fedex braces for peak holiday demand

Published November 17, 2021, 4:40 PM

by Emmie V. Abadilla

FedEx Express, a subsidiary of FedEx Corp. and one of the world’s largest express transportation companies, has braced itself to handle peak holiday surge in Asia Pacific, Middle East and Africa (AMEA) as demand is expected to exceed the 2020 holiday season.

Ready! Flex! Ship! FedEx Bolsters Capabilities in AMEA Photo

In a statement, FedEx said the COVID-19 spurred e-commerce boom is expected to continue and global online spending up 11 percent year-on-year to $910 billion this holiday season.

Asia Pacific accounts for more than 60 percent of online retail sales and online shopping has already picked up.

In Southeast Asia, about 40 percent of e-retailers said festive season sales represent the bulk of their annual sales.

In the Middle East and Africa, 22 percent of consumers are ready to shop online during Black Friday and Cyber Monday.

FedEx said it expects the 2021 peak season to 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.

In AMEA, the company has taken steps including workforce additions, facility expansions, network optimization, and innovative e-commerce solutions to meet the needs of consumers.

FedEx beefed up its 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 that will help support the growing e-commerce demand of bulk shipments and large items coming in and out of Asia during the holiday season.

To empower e-tailers with instant access to FedEx e-commerce portfolios and shipping solutions without switching platforms or accounts, FedEx launched FedEx Compatible and Alliance program by teaming up with leading e-commerce platforms across the Asia Pacific.

The company also introduced a new time-defined shipping solution – FedEx International Connect Plus (FICP).

This combines competitive speed with attractive prices to address consumers’ evolving needs for value-for-money international shipping services while ensuring shipments will be delivered within 1 to 5 business days within the region.

In anticipation of end consumers’ growing focus on the traceability of their holiday items and the increased preference for personalized delivery services, FedEx enhanced its FedEx Delivery Manager, which allows customized delivery options, timings, and locations.

 
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