UPS has added a new route between Paris (CDG) and Hong Kong (HKG) to meet expanding export demand from French businesses.
The cargo carrier will operate flights five times a week to support French exports of wine and other food products to Hong Kong and Asia. This business accounts for over 20% of its market.
Meanwhile, Hong Kong is home to large consumer bases in the high fashion, food and drink, and aerospace sectors. It is also the location of expanding dental and pharmaceutical outsourcing markets.
There is now greater demand for complex pharma treatments, including dental care supported by customised implants, fillings, enamels, and materials, which has aided growth in the French dental market.
To quickly meet the needs of their customers, French dental companies with and without domestic capacity are increasingly looking abroad to outsourcing markets like Hong Kong which have well developed dental laboratories and manufacturing hubs to provide support, said UPS.
Hong Kong’s luxury fashion market is also projected to grow, with Euromonitor expecting Hong Kong to maintain its lead as the location with the highest per capita spending on luxury goods until 2028.
Michiel van Veen, cluster manager, Benelux and France at UPS, said: “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.”
UPS reported a 1.5% year-on-year increase in fourth-quarter revenues to $25.3bn, while operating profit improved by 18.1% to $2.9bn and net income was up 7.2% to $1.7bn.
However, for the full year, revenues were up just 0.1% to $91.1bn, operating profit was down 7.4% to $8.5bn and net income declined 13.8% to $5.8bn.
UPS has also revealed plans to offload 50% of its business with its largest customer Amazon.
