Cainiao partners with Hong Kong Air Cargo on Southeast Asia flights

By Damian Brett

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

Initially, Hong Kong Air Cargo will operate seven flights per week to Manila, three per week to Kuala Lumpur and six to Bangkok on behalf of the logistics arm of e-commerce giant Alibaba.

“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,” Cainiao said.

The logistics company said that e-commerce goods from Mainland China are transported to Hong Kong and into a warehouse for sorting and consolidation before it can be shipped to Southeast Asia.

It has recently opened its “eHub” close to Hong Kong International Airport which will shorten overall delivery times by removing the need to transport to a warehouse facility first.

“The new logistics flow will shave off delivery time by 60%, 28% and 42% for goods shipped to the Philippines, Malaysia and Thailand respectively,” Cainiao said.

“Customers in these countries buying from 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 fast as three days.”

General manager of Cainiao Global Supply Chain, James Zhao explained: “As one of the fastest growing e-commerce markets in the world, Southeast Asia is projected to achieve a 23% compund annual growth rate to reach $172bn in 2025.

“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 airfreight network to more countries and regions to achieve our goal of delivering globally within 72 hours.”

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