12 November 2025

Small and medium-sized businesses across Asia Pacific and Europe are quietly powering one of the world’s most resilient trade corridors. According to a new FedEx survey on Asia–Europe trade growth released this week, firms on both sides of the Eurasian route are reporting robust exports and renewed confidence that this cross-continental relationship has more room to run.

The FedEx SME trade survey, conducted in September 2025, polled more than 2,000 small and medium enterprises across 22 markets. Among those in Asia Pacific (APAC), 76% said their exports to Europe had increased over the past year, while 87% of European firms trading with Asia said they plan to maintain or expand exports in the next two years. For a global economy still navigating supply-chain upheaval and geopolitical uncertainty, that’s a rare note of optimism.

A corridor gaining strength

The data echo a broader pattern in global logistics. The International Air Transport Association (IATA) reports that cargo traffic between Europe and Asia grew 13% year on year in August 2025 — marking an extraordinary 30 consecutive months of expansion. While other major lanes have wobbled, particularly those linking Asia with North America, the Asia–Europe trade corridor has quietly emerged as a growth engine.

For many SMEs, the appeal lies in diversification as much as demand. European buyers are still seeking competitive suppliers in Asia, while Asian producers are drawn by Europe’s relatively stable consumer markets. FedEx’s survey shows that exporters from APAC are increasingly targeting the UK, Germany and France, while European firms see China, Japan, India and South Korea as their most promising destinations.

Behind these flows lies a growing web of logistics infrastructure. FedEx has added five new weekly flights connecting Asia to Europe this autumn, bringing its total to 26. The company says this expansion allows express deliveries to reach major European cities in as little as 48 hours — a speed that would have been unthinkable for most small exporters even a few years ago.

Confidence built on pragmatism

That pace reflects how the Asia–Europe trade relationship has matured. “The Europe–APAC trade lane represents huge opportunities, but factors like trade complexity and supply chain visibility are critical to realising its potential,” says Wouter Roels, FedEx’s president for Europe. The message, in other words, is that confidence in the corridor rests on practical foundations: capacity, digital visibility, and predictable customs processes.

The survey bears this out. Around a third of SMEs in both regions said they now rely on digital trade tools to track shipments and manage customs documentation. Demand for better visibility is climbing fast, with 30% of Asian firms and 41% of European respondents calling for more streamlined digital systems. Meanwhile, roughly the same share of companies said they need stronger customs expertise — a reminder that, for smaller traders, paperwork can still make or break a deal.

Challenges that refuse to disappear

None of this momentum means that cross-border trade has become easy. The FedEx survey also points to persistent obstacles. For Asian exporters, logistics costs remain the single biggest headache, cited by 57% of respondents. Trade regulations and shifting tariffs continue to weigh heavily, with 86% saying policy changes had disrupted their business with Europe at least once in the past year.

Yet these firms are adapting quickly. Many have shifted from opportunistic exporting to more deliberate strategies: building regional warehousing, localising products and services, and using digital logistics platforms to compress delivery times. European firms, too, are learning to navigate complex Asian markets through partnerships and gradual expansion rather than one-size-fits-all entry plans.

That pragmatism is paying off. The steady climb in air cargo volumes suggests that both sides are learning to live with complexity rather than waiting for it to disappear. If globalisation has become messier, these companies seem determined to make it work on their own terms.

The strategic turn toward resilience

What makes the Europe–Asia trade corridor especially interesting is its contrast with other parts of the global trading system. The same IATA data show cargo traffic between Asia and North America fell 2.2% in August, while Europe–Middle East volumes slipped slightly. Against that backdrop, a 13% gain looks almost like an anomaly.

In part, the resilience reflects geography. Europe’s large, diversified consumer base has proven a stable outlet for Asian producers, particularly in electronics, fashion and precision manufacturing. Conversely, Asia’s vast supplier ecosystems continue to attract European firms looking for manufacturing flexibility and faster innovation cycles.

There’s also a political undertone. As governments on both continents promote friend-shoring and regional resilience, the Asia–Europe lane has benefited from its relative neutrality. For companies seeking growth without the friction of US–China trade tensions, shipping through this corridor feels like a pragmatic middle path.

The view from the ground

For the SMEs driving this shift, the story is less about geopolitics and more about opportunity. A small textile producer in Vietnam that can now deliver custom orders to Paris in two days; a German precision-tool maker selling into Japan through e-commerce channels; a logistics startup in Singapore using AI to predict customs bottlenecks — these are the threads weaving the corridor’s growth story.

As trade digitisation accelerates, the barriers that once confined smaller players to domestic markets are eroding. The move toward electronic trade documents (ETD), already adopted by major carriers, is quietly revolutionising how SMEs operate. Where once cross-border trade meant weeks of paperwork and unpredictable clearance, it now increasingly runs on data shared in real time between logistics providers, customs authorities and buyers.

A lane to watch

Looking ahead, the Asia–Europe trade corridor will depend on how well businesses and policymakers keep pace with its growth. Continued investment in logistics infrastructure — from airfreight capacity to digital customs systems — will be critical. So will clarity on trade rules, as both regions adjust to shifting regulations on data, sustainability, and product standards.

What’s clear, though, is that the corridor is not a passing trend. The FedEx survey suggests that 85% of Asia Pacific SMEs plan to increase or at least maintain their trade with Europe in the coming year. European exporters appear equally committed. The corridor has moved from the periphery of global trade to the centre, powered not by multinationals but by thousands of small firms moving goods, ideas and capital across continents.

For an interconnected world that sometimes feels like it’s pulling apart, that’s a rare and quietly hopeful story — proof that, even amid volatility, the will to trade and connect remains strong.