Saudia Cargo and Cainiao extend their partnership

In news from the transport logistic and air cargo Europe event in Munich today, Saudia Cargo has signed a new 12-month ‘space and service commitment’ agreement with Cainiao Network, the logistics arm of Alibaba Group.

The deal, which actually went into force on April 1, will be in effect until March 31 2024.

It exclusively reserves space on selected Saudia Cargo freighter flights operating from Hong Kong to Riyadh and Liege.

There was an official signing of the agreement in Munich. The agreement is said by Saudia Cargo to demonstrate its “continuing commitment to offering tailor-made solutions to one of the leading [e-commerce] retailers in the world”.

The deal provides Cainiao with increased access to Middle Eastern markets and allows Saudia Cargo to benefit from the growing global e-commerce market.

Teddy Zebitz, chief executive of Saudia Cargo, remarked that the freight carrier would “explore new lanes from Hong Kong and China to other destinations and provide [Cainiao] with customised solutions that meet their evolving needs”.

The carrier is exploring new lanes from Hong Kong and China to the Middle East, Africa, and possibly to Latin America in the longer term.

“This new agreement is a testament to our ongoing commitment to delivering reliable and efficient air freight services to one of the world’s leading ecommerce logistics corporations,” Zebitz also noted.

Vikram Vohra, Saudia Cargo’s regional director Asia Pacific, added: “The success of last year’s cooperation agreement with Cainiao allowed Saudia Cargo to achieve significant growth in e-commerce shipments.

“We have increased our capacity and number of cargo flights to destinations in the Middle East, Africa, Asia, Europe and North America to ensure we continue to meet the rising demand for e-commerce.”

Wu Man, general manager of Cainiao International’s Air Logistics Department, said that the partnership with Saudia Cargo “is a vital part of our business strategy, and we are thrilled to be expanding it further.

“By reserving exclusive space for shipments on select Saudia Cargo freighter flights, we can ensure that our cargo is transported with the utmost care and efficiency.”

Saudia Cargo is investing in supporting non-general cargo customers. Thus, for example, in April Saudia Cargo signed a global rental agreement with Tower Cold Chain for its temperature-controlled containers for shipping pharmaceutical, biotech and life science products.

The deal expanded the cargo airline’s selection of cold chain products, both in terms of cargo size and temperature requirements.

Tower Cold Chain’s technology is designed to maintain product integrity without the need for electricity.