Break Out: How cross-border e-commerce could evolve as Cainiao goes global | Air Cargo Next - Part 2
Air Cargo Next

No products in the cart.

Subscribe
  • News
  • Data & Tools
  • Events
    • Air Cargo Tech Summit
    • 2022 Webinar Series
    • Past Webinars
  • Podcasts
  • Featured Content
    • Latest Content
    • Features
    • NextUp
    • Consultant’s Corner
    • Digital Pulse
    • People
    • Cargo Chat
    • Bottom Line
    • Forwarders’ Forum
    • Issue Archive
Sunday, March 26, 2023
Log In
No Result
View All Results
  • Cool Chain
  • Dangerous Goods
  • Digital Booking
  • Drones
  • Sustainability
Air Cargo Next
  • News
  • Data & Tools
  • Events
    • Air Cargo Tech Summit
    • 2022 Webinar Series
    • Past Webinars
  • Podcasts
  • Featured Content
    • Latest Content
    • Features
    • NextUp
    • Consultant’s Corner
    • Digital Pulse
    • People
    • Cargo Chat
    • Bottom Line
    • Forwarders’ Forum
    • Issue Archive
Log In
No Result
View All Results
Air Cargo Next
No Result
View All Results

Break Out: How cross-border e-commerce could evolve as Cainiao goes global

Nina Chamlou by Nina Chamlou
April 4, 2019
in All Posts, E-Commerce, News
Reading Time: 7 mins read
0
Share on FacebookShare on LinkedIn

Close to home

Alibaba chose to make the city in which it is headquartered, Hangzhou, the location of one of its two international hubs within China. Its operations in the city won’t be identical to the other five, but could serve as something of a boilerplate for how operations could look at the other hub locations.

Early last fall, Alibaba finished the construction of a smart warehouse in Hangzhou, in partnership with carrier YTO Express – another Hangzhou-based company – of which Alibaba owns a minority stake. The high-efficiency facility is able to sort 500,000 items per day of mainly small e-commerce parcels by employing robots not much larger than a standard bathroom scale that zoom around the facility’s floor in a rhythmic synchronicity, sorting parcels into the correct shoots that will ship off to their destinations.

Alibaba has employed a team of regional carriers to help fulfill its airfreight needs in its home country of China. In addition to YTO Express, it also works with SF Express, a Shenzen-based carrier. And last May, it announced an investment of US$1.4 billion for a ten percent stake in ZTO Express, a Shanghai-based carrier of which it has had an ongoing relationship.

The Dimerco Express Group is a logistics company in China that is keen on capitalizing on e-commerce growth. Its president, Andy Hsu, spoke excitedly to Air Cargo World about the potential impact that a global e-commerce network will have on supply chains, saying that, in 2019, one out of every three of China’s retail dollars will be spent online.

“Cainiao’s up-and-coming hubs may provide more opportunities to freight forwarders,” he said, echoing a sentiment heard from many different kinds of players in cargo communities that Cainiao stands to affect. “Demand for both inbound and outbound air cargo movements keeps growing [and] availability of warehouse and handling capacity at air cargo hubs will be more sparse or expensive for the airports in ASEAN countries.”

Kuala Lumpur was chosen as Cainiao’s Southeast Asian hub, which will expand its reach to emerging markets such as Vietnam and the Philippines. There, it pushed forward the establishment of a digital free trade zone (DFTZ) that went live in 2017 – an initiative between Malaysia and China to loosen trade barriers between the two regions. And in a joint venture with Malaysia Airports Holdings Bhd’s (MAHB), Cainiao is expected to invest $197 million to develop the Kuala Lumpur International Airport (KLIA) Aeropolis Digital Free Trade Zone (DFTZ) Park, which will include the development of cargo terminals, sorting centers and warehouses. The hub is scheduled to be finished by 2020.

Transcargo Worldwide is Cainiao’s customs partners in the region. Ong Chin Keong, director of the Malaysia-based forwarder, agreed that Cainiao’s presence would benefit “airlines, terminals, operators, and forwarders,” but reiterated the same point Hsu had regarding whether or not there is enough capacity at the airport and in warehouses in the Southeast Asian region for the forthcoming growth in cargo volumes.

“The hub will probably pull away all e-commerce logistics from existing terminal operators and ease the congestion [at KUL], but we are still not very sure how it is going to work,” Keong said. He added that the traditional forwarder will continue to face congestion, as there are already “many players still queueing up for warehouse space.” Since capacity in the area is tight already at present, according to Keong and Hsu, it could be that Cainiao’s presence will pose some challenges for logistics players in the region that plan to capitalize on the e-commerce giant’s new presence in their communities.

Nearly 1,400 nautical miles north, Cainiao already has three fulfillment centers at its other long-established hub – Hong Kong – and is boosting capacity in its Southern Chinese hub even further. In a joint venture with China National Aviation Corp and YTO Express, $1.53 billion will be put toward the construction of another yet logistics center at Hong Kong Airport (HKG) as part of its efforts to expand its global delivery network, set to open in 2023.

Page 2 of 4
Prev1234Next
Tags: alibabaCainiaoe-commerceFeaturesnetwork
Previous Post

Etihad Cargo renews partnership with MICCO

Next Post

Amazon’s Tampa footprint to grow with Atlas acquisition of ex-United space

Related Posts

Ribbon cutting for the Delta Cargo cold chain facility
Cool Chain

Delta Cargo unveils largest cooler facility at JFK 

March 24, 2023
Photo / Bollore Logistics
Freight Forwarders

Bollore’s strong profit and revenue growth driven by air freight

March 24, 2023
Alaska Airlines Boeing 737-900ER photographed May 24-25, 2016 by Chad Slattery across California. (Photo/Alaska Airlines)
Sustainability

Alaska Airlines, Shell Aviation partner on SAF

March 24, 2023
On May 18, Air France operated an A350-900 flight from Paris (CDG) to Montreal (YUL) using SAFs derived from used cooking oils. Photo/Air France
Airports

FRA, other German airports expect disruption from Monday strike

March 24, 2023
Solar power panels at SIN
Sustainability

YEG to pilot hydrogen technologies to advance air cargo

March 23, 2023
© Can Stock Photo / OleCNX
E-Commerce

Listen: A discussion on the future of AI-driven chatbots

March 23, 2023
French flag flies in wind
Airports

Air cargo seeing little impact from French general strike

March 23, 2023
Sustainability

European Commission proposes Net Zero Industry Act

March 22, 2023
DSV unveils 130,000-square-meter logistics center in South Africa
Carriers

DSV targets US semiconductor industry with 2 acquisitions 

March 22, 2023
Next Post

Amazon’s Tampa footprint to grow with Atlas acquisition of ex-United space

STAY INFORMED WITH OUR NEWS ALERTS

FROM OUR CONTRIBUTORS

CARGO DRONE

Consultant Insight: Japan Post turns to drones and robots to supplement workforce 

March 24, 2023
© Can Stock Photo / OleCNX

Listen: A discussion on the future of AI-driven chatbots

March 23, 2023

Consultant Insight: FedEx sees positive side of cost cuts

March 17, 2023

SPONSORED

Chennault International Airport Completes Facility for Domestic, International Air Cargo

September 7, 2022
Singapore Changi Airport: Taking your Pharma Business Further - Image 2

Singapore Changi Airport: Taking your pharma business further

November 9, 2021
ULD

CODEX by Virtual Control fills gaps in cold-chain shipment visibility

July 2, 2021
  • About Us
  • Contact Us
  • Privacy Terms
  • ADA Compliance
  • Advertise

 Manage Cookie Consent

Follow Us

linkedin facebook link
© 2023 Royal Media
No Result
View All Results
  • News
    • All News
    • Cool Chain
    • Dangerous Goods
    • Digital Booking
    • Drones
    • Security
    • Sustainability
  • Data & Tools
  • Events
    • Air Cargo Tech Summit
    • 2022 Webinar Series
    • Cargo Facts EMEA
    • Cargo Facts Symposium
    • Cargo Facts Asia
  • Webinars
  • Podcasts
  • Featured Content
    • Latest Issue
    • Features
    • NextUp
    • Consultant’s Corner
    • Digital Pulse
    • People
    • Cargo Chat
    • Bottom Line
    • Forwarders’ Forum
    • Issue Archive
  • Subscribe
  • Log In / Account

© 2023 Royal Media & Air Cargo World

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
THIS WEBSITE USES COOKIES

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “I CONSENT”, you consent to the use of ALL the cookies.

Cookie settingsI CONSENT

Review our Cookie Policies
.
Manage Cookie Consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
34f6831605sessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
a64cedc0bfsessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
AWSALBCORS7 daysThis cookie is managed by Amazon Web Services and is used for load balancing.
cf_use_obpastCloudflare sets this cookie to improve page load times and to disallow any security restrictions based on the visitor's IP address.
cookielawinfo-checkbox-advertisement1 yearSet by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category .
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
CRAFT_CSRF_TOKENsessionThis cookie is set by the provider Craft CMS. This cookie is used for the purpose of website security that is Cross-Site-Request forgery prevention whenever a form is used.
crmcsrsessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
JSESSIONIDsessionThe JSESSIONID cookie is used by New Relic to store a session identifier so that New Relic can monitor session counts for an application.
LS_CSRF_TOKENsessionCloudflare sets this cookie to track users’ activities across multiple websites. It expires once the browser is closed.
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
CookieDurationDescription
_zcsr_tmpsessionZoho sets this cookie for the login function on the website.
663a60c55dsessionThis cookie is related to Zoho (Customer Service) Chatbox
bcookie2 yearsLinkedIn sets this cookie from LinkedIn share buttons and ad tags to recognize browser ID.
bscookie2 yearsLinkedIn sets this cookie to store performed actions on the website.
e188bc05fesessionThis cookie is set in relation to Zoho Campaigns
iamcsrsessionZoho (Customer Support) sets this cookie and is used for tracking visitors (for performance purposes)
langsessionLinkedIn sets this cookie to remember a user's language setting.
li_gc2 yearsLinkedIn uses to store consent of guests regarding the use of cookies for non-essential purposes
lidc1 dayLinkedIn sets the lidc cookie to facilitate data center selection.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
CookieDurationDescription
AWSALB7 daysAWSALB is an application load balancer cookie set by Amazon Web Services to map the session to the target.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
CookieDurationDescription
_ga2 yearsThe _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors.
_gid1 dayInstalled by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously.
CONSENT2 yearsYouTube sets this cookie via embedded youtube-videos and registers anonymous statistical data.
vuid2 yearsVimeo installs this cookie to collect tracking information by setting a unique ID to embed videos to the website.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
CookieDurationDescription
_dc_gtm_UA-1038974-181 minuteUsed to help identify the visitors by either age, gender, or interests by DoubleClick - Google Tag Manager.
_fbp3 monthsThis cookie is set by Facebook to display advertisements when either on Facebook or on a digital platform powered by Facebook advertising, after visiting the website.
fr3 monthsFacebook sets this cookie to show relevant advertisements to users by tracking user behaviour across the web, on sites that have Facebook pixel or Facebook social plugin.
VISITOR_INFO1_LIVE5 months 27 daysA cookie set by YouTube to measure bandwidth that determines whether the user gets the new or old player interface.
YSCsessionYSC cookie is set by Youtube and is used to track the views of embedded videos on Youtube pages.
yt-remote-connected-devicesneverYouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt-remote-device-idneverYouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt.innertube::nextIdneverThis cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.
yt.innertube::requestsneverThis cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
CookieDurationDescription
34f6831605sessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
ig_putmasessionNo description
Save & Accept
Powered by CookieYes Logo