Asia is becoming a destination for international delivery companies.
UPS, the world's largest packaging and delivery company, has identified its growth as dependent on the Asian e-commerce market.
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Western delivery companies are seeing growth opportunities in the Asian market. |
Nando Casarone, CEO of UPS, said that the growth of e-commerce and the increasing number of consumers choosing to buy goods from overseas have created a turning point in the trend of borderless delivery.
The freight transport relationship between Asia and Europe is experiencing a boom thanks to e-commerce.For a long time, Asia has been considered the manufacturing hub for many goods exported globally. But things started to change when Asians began spending heavily on and shipping products from European brands.
"Spending capacity continues to increase in Asia, and Europeans seem interested in selling to this market. Previously, Asian goods were shipped to Europe for sale, but this balance is gradually shifting," Nando observed.
E-commerce is becoming a lucrative opportunity for global delivery companies as more and more customers seek ways to receive products that previously required visiting physical stores. Therefore, UPS is paying particular attention to Asia, where the online shopping population is rapidly growing, with many people purchasing products from overseas, mostly technology or high-value items.
According to data from the Ecommerce Foundation (an international non-profit organization) in 2015, the Asia-Pacific region was the fastest-growing e-commerce region in the world (44.3%). This led to the highest annual growth in demand for delivery services.
To prepare for the rapidly increasing delivery demand here, UPS is expanding its local investments and technology to upgrade its services to match those in the US and Europe. These measures aim to improve delivery times from supplier to buyer, while also investing in solutions for transporting sensitive items such as medical supplies. According to Reuters, the company also plans to open 3D printing facilities in Singapore and Japan, further expanding its range of services.
Every evening, the Boeing 747, the largest aircraft in UPS's fleet, regularly takes off from its European depot, carrying shipments to Asia, and the number of flights confirmed by UPS representatives is "increasing significantly." To meet the growing delivery demand, UPS Korea has had to expand its depot at Incheon International Airport by 60% compared to 2014, reaching 9,000 square meters.
According to VNE
