Alibaba logistics arm launches Singapore-China air freight route

ALIBABA Group's logistics arm on Thursday launched its first Singapore-China air freight route, which it said will help it fulfil its commitment to 72-hour global deliveries and anticipate shipment surges from upcoming shopping festivals such as 11/11.

Cainiao Smart Logistics Network will operate four weekly chartered flights on the route between Singapore and Hangzhou. The new route will allow it to develop more value-added services down the road, including delivery time slot options, goods assembly and returns, and delivery of specialised goods such as medical supplies.

E-commerce merchants in South-east Asia could also use it to widen their reach to Chinese consumers, Cainiao Network said.

"With the e-commerce boom in South-east Asia, we are ramping up our infrastructure in the region to better serve as the key logistics platform to fuel its continued growth," said James Zhao, general manager for global supply chain at Cainiao Network.

"The introduction of chartered flights between China and the regions, overseas warehouses and other infrastructure will help to create a more seamless and cost-effective logistics solution for e-commerce merchants, which in turn delivers more cost savings, greater convenience and a better experience for consumers."

A 2019 report from Google, Temasek and Bain predicted that South-east Asia's e-commerce sector was set to grow 600 per cent in four years and would exceed US$150 billion by 2025. The pandemic has accelerated online consumption and altered consumer behaviour, and a recent study of six South-east Asian countries by Bain found that 47 per cent of consumers reduced their offline purchases in the first half of 2020, while 30 per cent increased their online spending.

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Alibaba's South-east Asia e-commerce marketplace Lazada posted quarterly order growth of over 100 per cent for the quarter ended June 30, 2020. The orders reflected strong consumer demand in general merchandise, fast-moving consumer goods and electronics.