Cainiao Network has announced a partnership with Hong Kong Air Cargo to launch cargo flights to Southeast Asia via its Cainiao eHub.
As part of its phase-one rollout, Cainiao will operate seven weekly flights from Hong Kong to Manila in the Philippines, three weekly flights to Kuala Lumpur in Malaysia and six weekly flights to Bangkok in Thailand.
The expanded cargo capacity will support growing e-commerce logistics demand in Southeast Asia, with the ability to deliver approximately 250,000 parcels per week.
Jeffrey Zhang, director, commercial, Hong Kong Air Cargo, said, “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.”
Traditionally, e-commerce goods from mainland China are transported to Hong Kong and sent to 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 near Hong Kong International Airport to shorten overall delivery time.
James Zhao, general manager, Cainiao Global Supply Chain, commented, “As one of the fastest-growing e-commerce markets in the world, Southeast Asia is projected to achieve a 23% CAGR to reach US$172bn in 2025.1 With more cross-border e-commerce 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.”
According to Cainiao, the new logistics flow will cut the delivery time by 60%, 28% and 42% for goods shipped to the Philippines, Malaysia and Thailand, respectively. Customers in those countries who buy from platforms such as Lazada will be able to receive parcels from mainland China in as little as three days.
1) E-Conomy SEA 2020 report by Google, Temasek and Bain & Company