Two of the world’s largest cargo carriers have formalised a working relationship at one of Asia’s busiest freight gateways. FedEx Express and China Southern Air Logistics signed a strategic memorandum of understanding (MOU) on 2 June 2026 in Guangzhou, China. The agreement formally establishes cooperation between the world’s largest cargo airline by fleet size and the cargo arm of China Southern Airlines, which ranks in the top 10 carriers globally by cargo traffic according to the International Air Transport Association.
The signing took place in Guangzhou for good reason. FedEx operates its largest Asia-Pacific hub at Guangzhou Baiyun International Airport (CAN). China Southern Air Logistics is headquartered at the same airport. Both carriers already had an existing working relationship. This MOU deepens it across five defined areas: cargo space, routes, fleet, operations, and digitisation.
What the MOU Covers and Who Signed It
FedEx China President Poh-Yian Koh and China Southern Air Logistics Chairman Li Xiao signed the agreement. FedEx Chief Operating Officer of International and Chief Executive of Airline Richard W. Smith, along with China Southern Air Holding Co. President Han Wensheng, witnessed the signing. The MOU is structured around five cooperation pillars: international flight and hub connectivity, network planning, fleet resources, ground operations, and digitisation.
“By integrating FedEx global air network resources with China Southern Air Logistics’ operational experience in both domestic and international markets, we will further enhance route connectivity and operational efficiency. Together, we will build a smarter, more agile, and more resilient air logistics network, better serving the growing cross-border logistics needs of Chinese customers.”
Li Xiao confirmed the partnership builds on an existing foundation.
“The signing of this Strategic MOU marks an important milestone in expanding our cooperation dimensions and deepening mutually beneficial outcomes. The two sides will focus on five key areas to respective resource advantages, striving to enhance the stability and operational efficiency of the global supply chain.”
FedEx’s Guangzhou Expansion Underpins the Deal
The MOU does not exist in isolation. FedEx is investing heavily in its Guangzhou footprint. A new South China Operations Centre at CAN is scheduled to open in 2027. The facility spans 41,000 square metres (441,000 square feet), more than doubling FedEx’s existing space at the airport. Sorting capacity will triple, reaching 25,000 packages and documents per hour.
China Southern Air Logistics brings significant fleet capacity to the partnership. The carrier operates 19 Boeing 777 freighters alongside belly-hold capacity on parent company passenger aircraft. FedEx has been in China since 1984, giving it over four decades of market presence. The combination of FedEx’s global network and China Southern’s domestic and regional reach creates a complementary operational structure at a single hub.
Tariff Pressures and Asia-Pacific Infrastructure Investment
The deal comes during a period of active network realignment for FedEx. The carrier has shifted some China outbound flights away from US destinations toward Europe, responding to reduced US import demand following the Trump administration’s tariff increases on Chinese goods. Routing flexibility across the FedEx and China Southern combined network gives both carriers more options to adapt to shifting trade flows.
FedEx is also expanding beyond Guangzhou. The carrier recently broke ground on an expanded Clark gateway facility in the Philippines, which will span nearly 840,000 square feet on completion. Rival UPS is making similar moves in the Philippines. The broader picture is clear: global integrators are locking in Asia-Pacific infrastructure capacity now. The China Southern MOU fits this pattern, anchoring FedEx more deeply at one of the region’s most strategically located freight hubs.
CSN Perspective
Deals like this reshape the competitive environment for independent freight forwarders. When two major carriers align hub operations, route planning, and fleet resources at the same gateway, the efficiency gains flow first to their own networks. Smaller forwarders using traditional methods, email chains, and manual rate checks, risk falling further behind on speed and cost at key China tradelanes. Access to real capacity, real rates, and fast quoting matters more than ever.
At Cargo Solutions Network, we track these market moves so independent forwarders can respond. If China outbound is part of your business, you need to quote fast and access capacity without subscription costs eating your margin. Get your China cargo quote on CSN and compare your options in minutes, not hours.
Frequently Asked Questions
What did FedEx and China Southern Air Logistics agree to?
The two carriers signed a strategic MOU on 2 June 2026 in Guangzhou. The agreement covers five areas: cargo space, routes, fleet resources, ground operations, and digitisation. It formalises a cooperative relationship at Guangzhou Baiyun International Airport, where both carriers have major operations.
Why is Guangzhou central to this deal?
FedEx operates its largest Asia-Pacific hub at Guangzhou Baiyun International Airport. China Southern Air Logistics is headquartered there. The airport is a key international freight gateway, and both carriers are investing in expanding their operations at the site.
What is the new FedEx facility at Guangzhou?
FedEx’s new South China Operations Centre at CAN spans 41,000 square metres. It will more than double FedEx’s existing space at the airport and triple sorting capacity to 25,000 packages and documents per hour. The facility is expected to open in 2027.
How large is China Southern Air Logistics?
China Southern Air Logistics is the cargo unit of China Southern Airlines. It operates 19 Boeing 777 freighters and manages belly-hold cargo on parent company passenger aircraft. China Southern Airlines ranks in the top 10 carriers globally by cargo traffic, according to the IATA.
How does the tariff environment affect this partnership?
FedEx has already redirected some China outbound flights from US routes to European destinations due to reduced US import demand following tariff increases on Chinese goods. The expanded cooperation with China Southern gives both carriers more routing flexibility to adapt as trade flows continue to shift.
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