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Parcel and Postal Technology International
Logistics

Cainiao invests HK$5m to keep logistics flowing during Lunar New Year

mmBy Hazel KingFebruary 2, 20212 Mins Read
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Chinese logistics company Cainiao has announced it is investing HK$5m (US$645,000) in its logistics operations to keep deliveries flowing during the upcoming Lunar New Year shutdown, which typically spans two weeks. The investment means businesses in mainland China and Hong Kong will be able to continue their sales and deliveries without shipping delays.

The investment will be used to fund a 1,500-strong workforce across the full chain of logistics operations, including Cainiao’s warehouses, 170 island-wide collection points, partner and courier networks as well as customer service.

This new initiative will mean customers in Hong Kong will still be able to receive their parcels within three working days and will received additional protection and compensation for later deliveries.

“With the pandemic, logistics has increasingly served as an essential service that connects people to goods, services and most importantly, their loved ones. During festivities such as this Lunar New Year, we hope that by keeping the logistics service running, we are creating opportunities for businesses to increase sales revenue and for consumers to connect with their loved ones by sending gifts across the border or to enjoy local produce without having to commute home. As Taobao and Tmall’s official logistics provider, we are always seeking new and better ways to deliver more value-added logistics services to benefit businesses and consumers,” said Ray Cheuk, head of operations (Hong Kong), Cainiao Global Supply Chain.

According to Cainaio, logistics services are traditionally shut down for as long as three weeks during the Lunar New Year festivities, with services such as acceptance of orders and parcel deliveries closing as early as two weeks prior to the Lunar New Year – which this year falls on February 12 – and only resuming on the seventh day of the lunar calendar. This meant that businesses had to manage inventory, production timeline and shipping deadlines to ensure that they deliver to their customers successfully during the seasonal rush.

Cainiao’s investment announcement comes after the recent launch of its reverse logistics channel between Hong Kong and mainland China, as well as delivery guarantees to provide assurance and offer protection against late deliveries and damaged and lost goods.

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