- New trade lane shifts driven by new market opportunities and global trade challenges
- 87% of European SMEs trading with the Asia Pacific expect their trade balance to shift toward exports or maintain current levels
Federal Express Corporation, the world’s largest express transportation company, has unveiled insights from a new survey examining trade lane trends between Asia Pacific (APAC) and Europe, which highlights key enablers and barriers to cross-border trade.
Conducted in September 2025, the survey polled over 1,200 small- and medium-sized businesses (SMEs) across nine European markets, and 850 SMEs across 13 APAC markets, exploring business sentiment, readiness, and challenges for cross‑border expansion — both for APAC firms entering Europe and European firms trading internationally and pursuing opportunities in Asia Pacific.
The survey findings reveal a notable surge in European trade among APAC small and medium businesses, with 76% of respondents reporting increased export volumes over the past year. The United Kingdom (42%), Germany (40%), and France (38%) emerged as the top three markets driving business growth.
Confidence is equally strong among European SMEs trading with APAC, with 87% of businesses expecting to shift their trade balance in 2026 toward exports or maintaining current levels. This reciprocal optimism aligns with broader market trends. The Asia–Europe trade lane has recorded 30 consecutive months of growth as of August 2025, demonstrating remarkable momentum along this vital trade corridor for businesses of all sizes.
Asia Pacific Opportunity and Expansion Challenges:
Confidence in European markets is running high among APAC SMEs, with 85% planning to begin or expand trade within the next 12–24 months. This confidence in growth has been driven by heightened European demand, improved price competitiveness, and a need to diversify market strategy to build greater resilience in the face of a shifting trade landscape.
In Europe, internationally trading Turkish SMEs have the highest proportion of their customers in APAC, with more than one in 10 (12%) coming from this region. They are followed by SMEs in Belgium (8.5%), the Netherlands (7.6%), France (7%), Italy (5.7%), Poland (5%), Germany (4.4%), the UK (4.3%), and Spain (3.6%).
Looking toward 2026, China (55%) is overwhelmingly seen as the APAC market offering the best opportunities to grow for European SMEs, followed by Japan (36%), India (26%), and South Korea (24%). Strategic expansion prospects, comprehensive logistics solutions, and favourable trade agreements are cited as critical factors in supporting increased trade with APAC.
To better support customer growth, FedEx has expanded its global network by adding five weekly flights connecting Asia to Europethis month. Additionally, FedEx enhanced connectivity between Vietnam to Europe resulting in a one day faster transit time. With increased frequencies between APAC and Europe, FedEx now operates 26 weekly flights connecting Europe shipments to APAC, delivering express shipments to major destinations in as little as 48 hours. Within APAC, businesses benefit from the company’s vast capabilities with four regional hubs serving 44 countries and territories, supported by over 28,000 team members.
Apart from the APAC region, the U.S. (48%) and the Middle East (34%) are the top intercontinental regions with which Europe’s SMEs are trading. The top European market trading with the U.S. was the UK, while for the Middle East and APAC it was Turkey.
Despite enthusiasm for cross‑border expansion, challenges remain. Regulatory shifts, complex customs procedures, and global market volatility have emerged as key concerns, with 86% of APAC SMEs and 78% of European SMEs reporting that these factors impact their ability to conduct business.
“It’s clear that the Europe-APAC trade lane represents huge opportunities for SMEs across both regions,” says Wouter Roels, European President at FedEx.“This study also confirms that factors like support with trade complexity and supply chain visibility are critical to realising the full potential of the Europe-APAC corridor. With our physical networks and our vast amount of supply chain data, FedEx is ready to translate these opportunities into growth for our customers.”
Digital Innovation and Trade Expertise Essential for Cross-Border Trade Growth
As SMEs look for cross-border expansion, 30% of APAC and 41% of European businesses are calling for innovative digital tools to improve supply chain visibility, streamline shipping, and reduce delivery times. Meanwhile, 27% of APAC and 41% of European SMEs are also seeking greater customs expertise to navigate shifting regulations, avoid delays, and manage costs effectively.
FedEx is stepping up to meet evolving customer needs with an expanded portfolio of smart digital solutions and specialized trade expertise designed to simplify cross-border commerce. Its clearance and compliance teams help businesses navigate complex regulations — amongst others via customer webinars — to avoid customs delays, and minimize unexpected costs. Through tools like Electronic Trade Documents, customers can streamline customs declarations by uploading documents digitally to ensure timely delivery. To further support European SMEs who are expanding their global footprint, the FedEx SMB Hub provides multimedia resources, trade guidelines, and local market insights, equipping businesses with the knowledge and tools to confidently expand and compete across borders.
