Cainiao, the logistics arm of Chinese electronic retail giant Alibaba, this week began offering turnkey logistics and supply chain services for local businesses in South Korea.
The Alibaba Group (NYSE: BABA) logistics unit said its first- and last-mile, warehouse management, international shipping, trucking and customs clearance services should reduce delivery times to five to seven days from the current 10 to 13 days.
Cainiao is using its cloud-based logistics platform to connect cargo owners and transport service providers as well as sophisticated tracking technology to automate information sharing. It said it has more than 162,000 square feet of warehouse space strategically located near Incheon International Airport and the ports of Incheon and Buson to handle imports and exports.
China is South Korea’s largest trading partner, accounting for $160 billion, or 26%, of total exports and $107 billion, or 21%, of imports.
Cainiao said it will handle international shipments between the countries with six container vessels and six cargo planes per week. Cainiao uses contract carriers to operate its private airline and acts as a freight consolidator for ocean shipments, pre-buying blocks of container space from shipping lines.
Earlier this month, Cainiao launched an air charter network with direct service to South America to speed transit times for e-commerce shipments from China.
The Amazon (NASDQ: AMZN) rival has said it plans to build out its international supply chain and launch direct routes to major markets around the world. It expects to operate about 1,300 chartered flights by the end of 2020.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
RELATED NEWS:
Alibaba taps Atlas Air for parcel airlift to South America
Alibaba.com launches educational program for US B2B e-commerce manufacturers
Freight Fraud Symposium
Double brokering. AI deepfakes. Identity theft. Freight fraud is an existential threat to the industry. Get ahead of it.
Supply Chain AI Symposium
Past the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
Future of Rail Symposium
Reshoring is rewriting freight demand. Join shippers, rail executives, and government officials to shape the next decade.
Double brokering. AI deepfakes. Identity theft. Freight fraud is an existential threat to the industry. Get ahead of it.
Rock & Roll Hall of Fame • Cleveland, OH Register NowPast the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
The Old Post Office • Chicago, IL Register NowReshoring is rewriting freight demand. Join shippers, rail executives, and government officials to shape the next decade.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now
Warehouse Can Unloader
Since Alibaba became a public company, the usefullness of Alibaba has become diminished to being just another ecommerce site. Is there an alternative to alibaba that is like it used to be?