Cainiao Smart Logistics, the logistics arm of Alibaba Group Holding Limited, has announced a partnership with Hong Kong Air Cargo, a subsidiary of Hong Kong Airline, to launch cargo flights to Southeast Asia via its Cainiao eHub.

In a statement, Cainiao said Phase 1 rollout comprises seven, three and six weekly flights from Hong Kong to Manila in the Philippines, Kuala Lumpur in Malaysia, and Bangkok in Thailand respectively.

"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.

It noted that traditionally, e-Commerce goods from Mainland China are transported to Hong Kong and into a warehouse for sorting and consolidation before they can be shipped to Southeast Asia.

But with the integration of Cainiao eHub into the logistics chain, goods can now be moved directly to the eHub located near the airport to shorten overall delivery time.

Time savings for e-Commerce deliveries

Cainiao noted that the new logistics flow will shave off delivery time by 60%, 28% and 42% for goods shipped to the Philippines, Malaysia and Thailand in that order.

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.

“As one of the fastest-growing e-commerce markets in the world, Southeast Asia is projected to achieve a 23% CAGR to reach US$172 billion 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,” said James Zhao, general manager of Cainiao Global Supply Chain.

“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 air freight network to more countries and regions to achieve our goal of delivering globally within 72 hours,” he added.

Director, Commercial at Hong Kong Air Cargo, Jeffrey Zhang noted that the carrier has always envisioned Hong Kong to be an express e-Commerce hub.

“This is a very exciting day for Hong Kong Air Cargo. It has always been our goal to establish Hong Kong as an express e-commerce hub and this partnership is most definitely a step in the right direction,” Zhang said.