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.