FedEx launches route to South Korea
FedEx has launched four weekly non-stop 777F flights from its Memphis hub to South Korea to allow for delivery from the U.S., Canada and Latin America markets to Seoul in two to three business days.
Michael L. Ducker, executive vice president and CEO of FedEx Express, expects the new route to bolster trade flows to the country. According to FedEx's numbers, the U.S. sent $38.8 billion in goods to South Korea last year, which was a 35 percent increase over 2009's numbers.
“Korea is the seventh largest trading partner of the U.S. in terms of two-way trade, which is expected to increase after final approval of the U.S. – Korea Free Trade Agreement,” he said. "Flying direct to South Korea supports export trade from the U.S., Canada and select markets in Latin America and helps put our customers’ shipments from these locations into the South Korean market much faster.”
If the U.S. - Korea Free Trade Agreement is passed, it would significantly reduce Korean tarrifs. The U.S. International Trade Commission has estimated that this reduction would add at least $10 billion to the U.S. GDP each year. The agreement would also promote an increase in exports, which could mean another $10 billion increase, the commission has said.
In a speech last year, President Obama called the agreement "an integral part of my administration’s efforts to open foreign markets to U.S. goods and services ... and achieve our goal of doubling of U.S. exports over five years. It deepens the strong alliance between the United States and the Republic of Korea and reinforces American leadership in the Asia Pacific."