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Manila Bulletin devider Business devider Trade & Industry devider FedEx improves Vietnam-PH shipment transit service

FedEx improves Vietnam-PH shipment transit service

Published Nov 1, 2023 06:32 am

FedEx Express, one of the world’s largest express transportation firms, recently launched a new flight service with shortened transit times to develop intercontinental services between Vietnam and the Philippines.

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A water salute ceremony was held to welcome the first FedEx Boeing 767 Freighter that was used to kick-start the new flight in the evening of October 31, 2023.

The new flight, launched on Oct. 31, will use a dedicated B767 freighter that will fly four evenings a week from Ho Chi Minh City, Vietnam, where exporters shipping from Southern Vietnam can deliver shipments in one business day to the Philippines and other Asian markets, and two business days to Europe, according to a company statement.

The flight will connect Asia and Europe through the FedEx Asia Pacific Hub in Guangzhou, China.

FedEx now has nine weekly flights departing from Ho Chi Minh City, including five flights to Asia, Europe, and the United States comprising four daily morning flights through the South Pacific Hub in Singapore and one evening flight through the Asia Pacific Hub.

The shipping firm said it is continuing to support businesses and harness the potential of the Southeast Asian region, particularly the region’s manufacturing growing hubs and diversifying higher-value goods and services.

Maribeth Espinosa, managing director of FedEx Express Philippines, said “the improved transit time from Vietnam to the Philippines will support the growth in trade volumes between both markets.”

“In 2022, trade between the Philippines and Vietnam reached $7.8 billion, a 14.7 percent increase from the previous year. Combined with the projected revenue growth of e-commerce in Southeast Asia, the role of logistics in enabling intra-Asia trade becomes even more pronounced. The continuous rollout of enhanced and differentiated FedEx solutions will enable Philippine businesses to access more import and export opportunities,” she explained.

FedEx also cited the free trade agreements like Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and Regional Comprehensive Economic Partnership (RCEP) that are facilitating greater trade ties between countries.

“With the ratification of RCEP, we anticipate increased investments within the world’s largest free trade area, stimulating economic growth in Southeast Asia,” Espinosa added.

FedEx Express Asia Pacific, Middle East, and Africa Region President Kawal Preet said the company continues to "transform our air network to offer differentiated service for our customers and that includes building capacity and creating faster connections to meet demand."

“The Tiger Economies of Southeast Asia continue to grow at an accelerated pace, with a forecast of 4.9 percent growth in 2024.What we see happening in Vietnam is a great example of these regional trends. Our enhanced service in Vietnam is part of our journey to build a more flexible, efficient, and intelligent network and deliver an outstanding customer experience,” he added.

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