YunExpress, a Chinese logistics company specializing in cross-border e-commerce trade, has opened a 75,300-square foot terminal at East Midlands Airport in the United Kingdom, becoming the first Chinese-based company to handle its own cargo at the airport.
Cargo processing will commence on Thursday when a Central Airlines flight arrives with Chinese exports, according to an announcement by the airport. YunExpress began operating its own private flights to East Midlands Airport last May utilizing Boeing 777 freighter aircraft in partnership with China-based Central Airlines.
The lease of a dedicated cargo facility is another step in YunExpress’s long-term plan to build an integrated, end-to-end logistics network in Europe. Controlling the plane-to-warehouse process instead of utilizing third-party cargo handlers will allow YunExpress to expedite e-commerce flows onto trucks and to customer locations. YunExpress’s cargo base at East Midlands underscores the international expansion of Chinese logistics companies that help Chinese e-commerce platforms move orders by air to Europe and other regions besides the United States, where new customs rules have diminished demand for e-commerce trade by air.
Central Airlines currently operates four widebody flights per week to East Midlands. YunExpress, recently approved as a regulated agent and warehouse operator by UK aviation and border authorities, aims to provide loading, offloading and distribution services to other carriers in the near future, the airport said. It will employ about 40 persons at the warehouse.
In recent years, China and the U.K. have deepened trade cooperation, leading to a significant increase in demand for time-sensitive goods such as e-commerce parcels, machinery and medical supplies.
East Midlands Airport, the United Kingdom’s second largest cargo airport, has become a center for direct China cargo service in the past few years. The airport’s central location, lack of congestion, fewer night flying restrictions and cargo–focused infrastructure has attracted more freighter operators since the Covid crisis. East Midlands — home to the main UK air hubs of DHL Express, UPS and FedEx — is also benefitting from capacity constraints at other airports.
In response to increased cargo activity and to facilitate further growth in the medium term, the airport recently reconfigured its cargo aprons so that out of 27 cargo stands, 12 can now take wide-bodied aircraft, up from seven previously.
Companies can reach 80% of the UK population from East Midlands within four hours, airport officials say. Last year, East Midlands handled more than 413,000 tons of cargo.
The airport’s comprehensive plan calls for the future development of 1.3 million square feet in new warehouse space, taxiways and stands for up to 18 more aircraft to help meet a projected 54% growth in express freight cargo volumes over the next 20 years. MAG, the airport’s parent company, and global logistics property giant ProLogis are moving ahead with plans to develop a logistics and manufacturing park on part of the available land as part of the airport’s free trade zone.
“Their investment here is a shot in the arm for our cargo growth ambitions, which could see four large plots on the airfield developed with new cargo facilities. We fully anticipate YunExpress expanding their operation to support the growing number of cargo operators choosing East Midlands Airport as their UK hub,” airport commercial director Adam Andrews.
East Midlands also attracts SF Express
Seven airlines inaugurated service to East Midlands last year. Atlas Air, Saudia Cargo and Ethiopian Cargo operated widebody freighter aircraft from China to East Midlands during the summer season for Chinese customers. Etihad Cargo and Hong Kong Air Cargo also began flying to the UK airport last fall.
One Air, a startup freighter operated based in the United Kingdom, in September began scheduled service between Hong Kong and East Midlands, with a focus on carrying e-commerce and electronics onboard its Boeing 747-400 cargo jets.
In early November, SF Express began operating its first route from China to the United Kingdom for customer Air One, a sales agency affiliated with One Air. Under the initial one-year charter agreement, four Boeing 747-400 freighter services now connect Ezhou with East Midlands Airport, enabling faster nationwide distribution, according to company news releases.
The service represents an expansion of SF Express’s logistics network in Europe. China’s largest cargo airline, previously served Europe with routes from Ezhou to Frankfurt, Germany, and Liege, Belgium. To reach the United Kingdom, goods were trucked through the English Channel tunnel.
The 16.5-hour direct flights also are a faster, more reliable alternative than the traditional transshipment model, which relies on handoffs through third-parties in Middle East hubs such as Dubai, Qatar and Istanbul, Turkey. The point-to-point flights reduce end-to-end transit times to four days from about eight to 10 days, SF Express said.
Primary goods being exported to the UK via SF Express include e-commerce, machinery, apparel, solar panels and temperature-sensitive products. Return flights to China carry items such as Scotch whiskey, high-end cars, industrial equipment, handicrafts, food and agricultural products, pharmaceuticals and premium infant formula.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
Write to Eric Kulisch at ekulisch@freightwaves.com.
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