Bolloré Logistics has launched a new air charter service between Singapore and Hainan to support the growth of the retail market in the Chinese city.

Bolloré Logistics signed a cooperation agreement with the Hainan Provincial Bureau of International Economic Development (IEDB) and Haikou Comprehensive Bonded Zone Management Committee on March 20 to strengthen partnerships and enhance collaborations between the parties.

"The air charter service will operate weekly from Singapore to Haikou via Hong Kong, providing perfumes and cosmetics and luxury retail brands with secured transport capacity to grow in the Hainan market," the announcement said.

It added that the service offers end-to-end monitoring for both Dangerous Goods (DG) and Non-Dangerous Goods (Non-DG).

Coupled with the warehousing capabilities and value-added services in Bolloré Logistics' three hubs, the solution will provide brands with the agility and flexibility required for their business.

Bolloré said on the Singapore-Hong Kong-Haikou route, sustainable aviation fuel (SAF), a low-carbon alternative to traditional jet fuel, is used.

Made primarily from used cooking oil and waste resources, the use of SAF reduces CO2 emissions of the charter by 25% as fewer natural resources are used.

Booming duty-free shopping in Haikou

"Many of our customers share similar goals when it comes to sustainability and reducing carbon emissions in their supply chain. Using SAF in this charter is therefore in accordance with our group's program, 'Powering Sustainable Logistics,' and showcases our capability to set up and expand our services for clients," said Loig Pavard, CEO of Bolloré Logistics Singapore.

He noted that over the past three years, offshore duty-free spending has "skyrocketed" in the city of Haikou, which hosts the largest stand-alone duty-free shop in the world.

"To support Hainan's booming travel retail industry, Bolloré Logistics has worked to enhance its transport and logistics services and provide end-to-end supply chain solutions for retailers there," he added.

Sun Bo, vice mayor of Haikou city, noted that the city discussed the constructive cooperation plan between Haikou and Bolloré Logistics team last February.

"The launch of the new air charter service, together with the distribution hub that Bolloré Logistics will build in Haikou, will support Haikou's strategic development plan to be an international travel retail centre," Sun Bo said.