(Yicai) April 9 -- ZTO Express has launched the leading Chinese logistics provider's first international air cargo route to Europe, with the A330P2F all-cargo aircraft of its unit ZTO Aviation set to fly between Hong Kong and Budapest.

ZTO Aviation held a launch ceremony in Chengdu to mark the opening of the route yesterday. The A330P2F, named ZTO Express, has been converted into a cargo plane from an Airbus A330 passenger jet and will be operated in collaboration with Malév Hungarian Airlines. 

ZTO Express set up ZTO Aviation in the middle of last year. Major Chinese logistics firms have created their own air cargo subsidiaries in recent years, with SF Express, China Post Group, JD Logistics, and YTO Express Group among them, driven by the rapid and sustained growth in cross-border e-commerce shipments, particularly to European and American markets.

ZTO Aviation will continue to introduce more wide-body all-cargo aircraft to accelerate the development of an air network covering key global regions and hubs, said President Sun Zhenhua. It aims to enhance its cross-border full-chain service capabilities by leveraging the ZTO ecosystem, transitioning from "airport to airport" to "warehouse to warehouse" and ultimately to "door to door," Sun noted.

Most cargo moved by the first aircraft will consist of e-commerce goods, with subsequent route planning to also focus on other European and American markets, Sun pointed out.

"Having our own aircraft and achieving stable operations will allow us to connect ZTO Express' cloud warehouses, express delivery, international segments, and more, thereby creating a broader logistics solution," noted Executive President Zhu Jingxi.

Cross-border e-commerce goods are the main driving force behind the growth in air transport volume, particularly with the rapid increase in shipments to the European and American markets, with an ongoing momentum since the second half of 2023, according to industry insiders.

China's cross-border e-commerce imports and exports rose 4.6 percent to CNY2.75 trillion (USD402.3 billion) last year from the previous year, with a compound annual growth rate of 15.5 percent from 2019 to 2025, according to customs authority data.

ZTO Express' entry into the China-Europe air cargo sector comes amid soaring freight rates. The Middle East crisis has led to a sharp increase in aviation fuel costs since last month, prompting many passenger and cargo airlines to hike prices or introduce fuel surcharges.

In addition, lots of cargo is rerouted from traditional Middle Eastern transit hubs through alternative gateways in Europe, such as Budapest, leading to congestion at European cargo hubs and driving up freight rates on relevant air routes. 

Direct freight rates to Europe have risen by 30 percent to 40 percent compared to before the start of the Middle East conflict, said Duan Bo, chairman of Malév Hungarian Airlines.

Editor: Martin Kadiev