UPS has introduced an atypical air cargo route focused on reverse trade from Paris to Hong Kong to support exporters in France.
The primary flow of goods by air and ocean tends to be from Asia to Europe because that is where low-cost manufacturing centers and a large consumer market are located. Backhaul routes tend to carry less cargo.
The integrated express delivery and logistics company informed select news outlets that it is operating a Boeing 747-8 freighter five times per week from Paris Charles de Gaulle Airport to Hong Kong to meet growing export demand from French businesses. Primary customers include makers of wine, perishable foods, luxury goods, medical products and aerospace components
The new service makes economic sense because Hong Kong has large consumer bases for high fashion, food and drinks, as well as growing sectors for contract manufacturing of dental and pharmaceutical products, UPS (NYSE: UPS) said.
France is the largest exporter of wine and other food products to Hong Kong and Asia, accounting for over 20% of its total export market. Hong Kong’s luxury fashion market has recovered from the pandemic and is projected to grow 4.9% in the next five years, reaching sales of $2.9 billion in 2029, according to Euromonitor. Hong Kong has the highest per-capita spending on luxury goods in the world.
“With this new flight path, we can provide French businesses of all sizes and industries the fast and reliable service they need to grow and stay competitive. Shipping preferences play an increasing part in a consumer’s purchasing decision. Thanks to our investments we can make logistics a competitive advantage, offering unmatched choice, convenience, and control,” said Michiel van Veen, a manager for Benelux and France, in a prepared statement.
It is more common for airlines to provide scheduled service from Asia to Europe, sometimes as a round trip with less backhaul volume or with aircraft deployed to other destinations before returning to origin.
An Asian logistics company recently chartered freighter aircraft to ship Chinese goods from Ezhou International Airport in China to Paris via Abu Dhabi, with Etihad Airways flying the second leg with Boeing 777s. Etihad’s cargo division also began operating a weekly cargo service for DB Schenker from Ezhou to Frankfurt, Germany, carrying e-commerce packages, electronics, industrial goods, retail merchandise and automotive parts.
Other recent UPS enhancements in France include the introduction of surcharge-free Saturday delivery and the addition of 100 Iveco eDaily vans to the delivery fleet.