Cainiao Smart Logistics Network, the logistics arm of Chinese e-commerce giant, Alibaba, has teamed up with US air cargo and aviation services group, Atlas Air Worldwide Holdings (AAWW), to launch an air charter programme “to enhance Alibaba’s extensive logistics network as cross-border trade between China and Latin America continues to expand.”
Cainiao’s parcel volume to South America reached over eight million packages in the third quarter of 2020, double the number transported during the second quarter of this year, a joint statement on the partnership noted.
Beginning in November, Atlas Air will operate three weekly charter flights dedicated to Cainiao, linking China with Brazil and Chile, reducing the overall shipping time from a week to three days on average.
“At Cainiao, we continue to invest in our network to support Alibaba merchants operating over 100,000 online shops,” said William Xiong, Cainiao's Chief Strategist and General Manager of Export Logistics. “Our partnership with Atlas Air will help us establish an efficient, reliable network to South America and other worldwide destinations by significantly reducing airfreight delivery time for the merchants we support.”
For his part, the President and CEO of Atlas Air Worldwide, John Dietrich, commented: “We are excited to support Cainiao and Alibaba’s fast-growing e-commerce business and its global expansion in South America, and we look forward to developing our partnership further.
“The global scale of our operating networks will enable Cainiao to continue to enhance its logistics capabilities and meet its objectives to offer customers faster deliveries globally.”
As previously announced, Cainiao “is committed to facilitating international trade by improving overall supply chain efficiency and launching direct routes to major regions across the globe,” the statement added. Cainiao is expected to operate about 1,300 chartered flights by the end of 2020.
Cainiao adds Asia and Europe connections
Last month, Cainiao announced the launch of a China-Malaysia cross-border e-commerce logistics service in partnership with BEST Inc., described as “a leading integrated smart supply chain solutions and logistics services provider in China.”
This covers customs clearance, sea freight forwarding, overseas warehousing and last-mile delivery, a statement said, “meaning BEST will send e-commerce parcels from cross-border warehouses in China to Malaysia via international shipping and deliver those parcels to consumers directly through its local express network.”
Cainiao also enlarged its international footprint during the summer months. In August, it teamed up with Air China Cargo to launch a cross-border e-commerce route between Hangzhou and Liège, in Belgium, using B777 freighters, with the aim of speeding up delivery times between China and Europe. Provision was made to serve the route three times weekly, with flights continuing on from Liège to Madrid.
In July, Cainiao expanded its air freight capacity partnership with Volga-Dnepr Group (VDG), in response to growing demand from cross-border e-commerce shipments that has accelerated due to the COVID-19 pandemic. VDG subsidiary AirBridgeCargo Airlines (ABC) began operating a regular Hong Kong-Madrid two-way service for Cainiao with B747 freighters, carrying high-tech products and consumer goods exported by sellers on the AliExpress e-commerce platform. Liège also features on the itinerary.
The Belgian gateway has been designated by Cainiao as one of its five global hubs, the others being located in Kuala Lumpur, Dubai, Moscow and Hangzhou. A €75 million project to build 220,000 sqm facility for Cainiao at Liège is scheduled to open next year.
More flights for faster deliveries
In June this year, Cainiao unveiled an investment programme of RMB 1 billion (US$148.6 million) in more flights and overseas warehouses with the aim of accelerating deliveries from China to destinations worldwide. The move is part of the group’s long-term strategic objective of offering package deliveries inside China within 24 hours and across the globe within 72 hours.
Cainiao set out plans to increase its number of chartered flights to 1,260 from 260 over a period of nine months – to around 35 per week – to reduce delivery times from 7-10 days to 3-5 days.
Logistics turnover surge
According to the latest financial figures released by its parent company, Cainiao increased its revenues by 54% to RMB7.7 billion, excluding inter-company transactions, for the three months ending June 30, 2020, compared with the same period last year.
Growth was primarily due to the rises in both average revenue per order and volume of orders fulfilled from its fast-growing cross-border and international e-commerce retail businesses.
