ZTO Express Launches First International Air Cargo Route to Europe

On April 9, a leading Chinese logistics company launched its first international air cargo route to Europe. Its all-cargo aircraft, an A330P2F operated by its subsidiary ZTO Aviation, will fly between Hong Kong and Budapest.

The airline held a launch event in Chengdu yesterday to celebrate the new route. The aircraft, named ZTO Express, was converted from an Airbus A330 passenger plane into a freighter and will operate in partnership with Malév Hungarian Airlines.

Founded mid-last year, ZTO Aviation is part of a growing trend among major Chinese logistics firms establishing their own air cargo subsidiaries. Companies like SF Express, China Post Group, JD Logistics, and YTO Express have been expanding into airfreight in response to the rapid growth of cross-border e-commerce shipments, especially to markets in Europe and America.

The company plans to add more wide-body all-cargo aircraft to develop a global air network focused on key regions and hubs. President Sun Zhenhua shared that the goal is to strengthen cross-border service capabilities by utilizing the ZTO ecosystem, shifting from “airport to airport” to “warehouse to warehouse,” and eventually to “door to door.”

Initially, most cargo on this new route will comprise e-commerce goods, with future plans to expand operations to other European and American markets, Sun indicated.

“Owning our own aircraft and maintaining stable operations will enable us to connect ZTO Express’ cloud warehouses, express services, international segments, and more, creating a comprehensive logistics solution,” said Executive President Zhu Jingxi.

The surge in cross-border e-commerce shipments has been a major driver for increased air freight volumes, particularly with the rapid growth of shipments to Europe and America since late 2023, industry experts note.

Data from customs authorities shows China’s cross-border e-commerce imports and exports increased by 4.6% last year, reaching CNY 2.75 trillion (about USD 402.3 billion), with an annual growth rate of 15.5% projected from 2019 through 2025.

ZTO’s entry into the China-Europe air freight market comes as freight rates are climbing sharply. The ongoing Middle East conflict has led to higher aviation fuel costs, prompting many passenger and cargo airlines to raise prices or implement fuel surcharges since last month.

Additionally, cargo is being rerouted away from traditional Middle Eastern transit hubs through alternative European gateways like Budapest, causing congestion at European cargo centers and pushing freight rates higher on these routes.

According to Duan Bo, chairman of Malév Hungarian Airlines, direct freight rates to Europe have increased by 30% to 40% compared to prior to the Middle East conflict.