JD Logistics, the logistics arm of Chinese e-commerce firm JD, has obtained approval from aviation authorities to put its self-owned air cargo airline Jiangsu Jingdong Cargo Airlines Co into operation, a key move expected to help JD boost its long-haul freight capacity, improve delivery efficiency and ensure the stability of supply chains. Experts said JD is facing intense competition from local courier companies such as SF Express, YTO Express and Cainiao Network, which have ramped up efforts to build global delivery networks, expand air cargo fleets and strengthen air cargo capacities. The cargo airline is based at Nantong Xingdong International Airport in Jiangsu province. JD Logistics said the carrying capacity of each airplane will be 23 metric tons, without disclosing the number and type of aircraft that will come into operation. The company will develop its domestic air freight business in the Yangtze River Delta region, the Bohai Economic Rim area and the Pearl River Delta region in the preliminary stage, with a focus on the cities of Nantong and Wuxi in Jiangsu province, Beijing, and Shenzhen in Guangdong province, and plans to cover more major cities across the nation by the end of 2025, according to JD Logistics.
Yang Daqing, Deputy Director of Research at the China Federation of Logistics & Purchasing, said currently, air cargo occupies a relatively small portion of China’s comprehensive transportation system, which cannot meet consumers’ fast-growing demand for high-tech products as well as cold chain logistics services covering the transportation of fresh commodities and medicine. “The shortage of air cargo capacity, specialized air cargo enterprises and hikes in transportation costs have become acute amid the Covid-19 pandemic,” Yang said, adding the permit to operate an air cargo fleet will help JD enhance delivery efficiency, especially in the cross-provincial and cross-border logistics segment, boost its long-haul freight capacity and ensure smooth operation of supply chains.
Other logistics firms have also invested heavily in providing air cargo services. SF Airlines, the aviation branch of SF Express, has been expanding its freighter fleet to 73 aircraft after a Boeing 757-200 freighter was newly introduced in July. YTO Express said it will have about 20 aircraft by the end of next year. China’s air cargo traffic returned to normal recently after posting a V-shaped recovery in the first half of this year. In July, the civil aviation industry transported a total of 539,000 tons of cargo and mail, an increase of 28.3% compared with April, according to the CAAC, the China Daily reports.
