Chinese logistics and express delivery companies are ramping up efforts to provide air cargo services, as part of a broader push to boost delivery efficiency and ensure the stability and security of supply chains, industry experts said. They are also building more logistics infrastructure such as warehouses overseas to help cross-border e-commerce platforms reduce logistics costs and improve user experience, and give global consumers access to high-quality Chinese brands and products. Cainiao Group, the logistics arm of Alibaba Group Holding, is building global logistics networks and expanding its footprint in Europe, North America and Southeast Asia, with the target of establishing one to two local warehousing and distribution centers each year. Wan Lin, CEO of Cainiao, said the company will further improve its global delivery services and deepen logistics capabilities in key overseas markets as part of its go-global push. Wan made the remarks at the Cainiao Global Smart Logistics Summit in June. “The next decade will usher in new development opportunities for smart logistics, and Cainiao will dedicate its efforts to building a leading global smart logistics network encompassing domestic, cross-border and overseas shipping, as well as last-mile deliveries, logistics infrastructure and technology,” Wan said.
Cainiao is strengthening its overseas expansion in collaboration with AliExpress, the business-to-customer platform of Alibaba that sells consumer goods to overseas markets, pledging to deliver cross-border parcels within five working days. The move will speed up deliveries by an average of 30% compared to the industry standard. The company has increased the number of its overseas distribution centers to 18, as well as added warehouses and self-operated distribution and pickup facilities. Cainiao has also announced the launch of weekend deliveries and same-city delivery services in Spain’s major urban areas to optimize local logistics. The cross-border parcel volume in Spain increased by more than 60% in June compared with the same period last year. The company’s logistics network covers over 30 cities in Spain, with next-day delivery in cities such as Madrid and Barcelona. Cainiao has set up six smart logistics hubs around the world, operates more than 3 million square meters of cross-border logistics warehouses and runs over 240 chartered flights for trunk logistics each month.
Cainiao has partnered with Shenzhen Baoan International Airport to establish an air cargo center, with plans to launch more international cargo routes originating from Shenzhen, Guangdong province. The new flights have been launched in collaboration with U.S. air cargo operator Atlas Air, operating twice a week, with a loading capacity of over 220 metric tons per flight. Atlas Air provides cargo transportation for products ranging from electronics to automobiles. A chartered flight connecting Shenzhen to Sao Paulo, Brazil, has been officially launched. The air cargo center was established to support the growing cross-border e-commerce volume from China to Latin America. It will play a key role in streamlining and optimizing parcel sorting and Customs clearance for imports and exports at the airport, Cainiao said.
Zhang Zhouping, Senior Analyst tracking business-to-business and cross-border activities at the Internet Economy Institute, said establishing logistics infrastructure overseas will help improve delivery efficiency, safeguard the stability of supply chains and boost the development of cross-border e-commerce. Chinese online retailers are expanding their footprint in overseas markets to seek new sources of revenue in the face of fierce competition in the domestic market, said Lu Zhenwang, CEO of Shanghai-based Wanqing Consultancy.
JD Logistics, the logistics arm of e-commerce firm JD, said it plans to speed up infrastructure construction globally and build more overseas warehouses in the Americas, Europe, Southeast Asia, Australia and the Middle East, where Chinese enterprises are expanding their business activities with the e-commerce penetration rate continuing to rise. So far, the company has launched self-operated overseas warehouses in the United States, Germany, the Netherlands, France, the United Kingdom, Southeast Asia, the Middle East and Australia, said Ji Jie, General Manager of international warehousing and distribution at JD Logistics.
By the end of 2022, JD Logistics operated approximately 90 bonded warehouses, international direct-mail warehouses and overseas warehouses, covering an aggregated floor area of nearly 900,000 sq m. In addition, Jiangsu Jingdong Cargo Airlines Co, also known as JD Airlines, an affiliate of JD Logistics, received approval from aviation authorities to put its self-owned air cargo fleet into operation and boost its long-haul freight capacity last August. JD Airlines launched a new all-cargo route from Beijing to Shenzhen in April. The airline operates the route six days a week, with a daily transportation capacity of up to 20 tons, mainly transporting high-end goods, including fresh produce, fashion and luxury products, medicines and medical products. It plans to strengthen its collaboration with Beijing Daxing International Airport, continue to expand its air freight services and improve the supply chain efficiency for neighboring industry belts, the China Daily reports.
