Cainiao and Hong Kong Air Cargo speed up cross border deliveries

Alibaba’s Cainiao Smart Logistics is working with Hong Kong Air Cargo to speed up delivery times to SE Asian Alibaba customers by using the Cainiao Hong Kong eHub.

The first phase of the roll out of the partnership will involve flights between Hong Kong and the Philippines, Thailand and Malaysia. These will meet the strong demand for e-commerce in those countries, with Hong Kong Air Cargo transporting around 250,000 parcels a week.

Until recently goods from mainland China have been sent to a warehouse in Hong Kong for sorting and consolidation before being shipped on to SE Asia. When the eHub is brought into the supply chain goods will go directly to the eHub and shorten delivery time by anything up to 60% in the case of the Philippines. Lazada shoppers will be able to receive parcels in as few as three days after making the order.

General Manager of Cainiao Global Supply Chain, Mr. James Zhao said, “As one of the fastest growing e-commerce markets in the world, Southeast Asia is projected to achieve a 23% CAGR to reach US$172 billion in 2025. 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, Mr. Jeffrey Zhang 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.”

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