Cainiao taps Hong Kong Air for Southeast Asia e-commerce

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Cainiao Smart Logistics Network is partnering Hong Kong Air Cargo to launch cargo flights to Southeast Asia via Cainiao eHub.

Phase 1 rollout comprises weekly flights to three Southeast destinations, including seven from Hong Kong (HKG) to Manila (MNL), three Hong Kong to Kuala Lumpur (KUL), and six Hong Kong to Bangkok.

The expanded cargo capacity will support growing e-commerce logistics demand in Southeast Asia, with the ability to deliver approximately a quarter-million parcels per week, the logistics arm of the Alibaba Group says.

One of the fastest-growing e-commerce markets in the world, Southeast Asia is projected to achieve a 23 per cent CAGR to reach USD 172 billion by 2025.cainiao

Typically, e-commerce goods from Mainland China are transported to Hong Kong and into a warehouse for sorting and consolidation before being shipped to Southeast Asia.

With the integration of Cainiao eHub into the logistics chain, goods can now be moved directly to the eHub located near the airport to shorten overall delivery time. Cainiao says the new logistics flow will shave off delivery time by 60, 28 and 42 per cent for goods shipped to the Philippines, Malaysia and Thailand respectively.

Customers in these countries buying from e-commerce platforms such as Lazada, the flagship e-commerce platform of Alibaba Group in Southeast Asia, will be able to receive parcels from Mainland China in as short as three days.

General manager of Cainiao Global Supply Chain, James Zhao says: “With more cross-border eCommerce goods moving from Mainland China to Southeast Asia, the launch of cargo flights via Cainiao eHub will allow us to create a seamless logistics network that will improve efficiency and reduce shipping time.

“The partnership with Hong Kong Air Cargo will further safeguard air freight stability and cost efficiency to benefit merchants and consumers in the region. In the near term, we aim to expand our air freight network to more countries and regions to achieve our goal of delivering globally within 72 hours.”

Director, commercial at Hong Kong Air Cargo, Jeffrey Zhang comments: “This is a very exciting day for Hong Kong Air Cargo. It has always been our goal to establish Hong Kong as an express e-commerce hub and this partnership is most definitely a step in the right direction. We are proud to partner with Cainiao.”

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