Alibaba.com has signed a a Memorandum of Understanding (MoU) with Kuehne + Nagel which will see the Swiss-based group provide global logistics services to customers of the Chinese e-commerce leader’s B2B business unit.
Kuehne + Nagel said that under the MoU its “global logistics network and comprehensive capabilities will combine with Alibaba’s expertise in B2B e-commerce, to offer China based shippers leading e-commerce logistics solutions.'
It added: “Since more than a year, Alibaba.com’s paid members in China have been able to instantly obtain quotations, book pickup and destination delivery services for airfreight consignments via Kuehne + Nagel’s digital solution KN FreightNet on Alibaba.com.
“The e-commerce relationship has already been extended to include less-than-container-load (LCL) solutions as well. Now, the strategic partnership will draw closer cooperation between the e-commerce giant and Kuehne + Nagel with intent to expand the scope of logistics services on offer in the near future to cover the various modes of transportation (air, sea, rail, overland) and contract logistics outside China.”
Commenting on the MoU with Kuehne + Nagel, Steve Su, Director of Logistics at Alibaba.com, said: “We are pleased to partner with Kuehne + Nagel to offer our SME customers comprehensive logistics services, enabling them to capitalise on cross-border trade opportunities.”
For his part, Wong Siew Loong, Kuehne + Nagel's President, North Asia, commented: “We are excited to enter this MoU with Alibaba.com bringing together Alibaba’s e-commerce penetration with Kuehne + Nagel’s worldwide logistics capabilities.
“For Kuehne + Nagel, the establishment of this relationship is in line with our global strategy to digitalise logistics services in order to meet the evolving needs of customers today. We look forward to further developing this cooperation by expanding the scope of our ecommerce logistics offering to Alibaba customers in the future.”
Alibaba has been busy expanding its logistics footprint through agreements with a number of players in the sector over the past year or so.
Last month, it launched subcontracted flights to Europe with cargo airline SW Italia operating three weekly flights between Hong Kong and the northern Italian city of Brescia (about 90km east of Milan) via Baku with a new B747-400 freighter.
The flights are in partnership with Chinese company STO Express, one of the main logistics suppliers for Alibaba through the latter’s Cainiao logistics network.
In February this year, it signed a cooperation agreement with French container line, CMA CGM to begin a digital partnership that involves customers using Alibaba’s OneTouch platform to book shipping capacity ex-China.
The move followed a similar agreement between Alibaba and another ocean shipping giant, Maersk Line, a few months earlier to trial digital bookings via Alibaba’s OneTouch portal.
Acquired by Alibaba in 2010, OneTouch supports its parent company’s Alibaba.com business-to-business marketplace and targets small and medium-sized Chinese exporters with online services such as customs clearance and logistics, allowing them to book air freight and parcel delivery services.
In January this year, Alibaba.com concluded a co-operation agreement with the WCA network of independent freight forwarders. This sees approved WCA member companies integrated into the Alibaba.com logistics platform for cross-border e-commerce shipments.
In December 2016, Alibaba selected SEKO Logistics as a 3PL service provider in Hong Kong and Taiwan to support small and medium-sized companies.
