JD Logistics, the logistics arm of Chinese e-commerce giant JD.com, has opened an all-cargo charter flight between Shenzhen and Bangkok, the e-commerce giant's first in the Asia-Pacific region. 

The move comes after the company successfully listed on the Hong Kong Stock Exchange on May 28, the IPO raising an estimated HK$24.11 billion (US$3.1 billion).

48-hour delivery 

In a statement, JD said the service will be open to small and medium-sized enterprises (SMEs) in both countries, and the freight-dedicated route will facilitate delivery of goods from mainland China to customers in Thailand and vice versa within 48 hours. 

“We see enormous potential in Southeast Asia, and this is just the first step,” said Stard Huang, head of JD’s international logistics business, noting that JD will leverage its international supply chain resources to strengthen the relationship between Thailand and China and to facilitate the transport of Chinese goods to and from Southeast Asia.

The service will run between Shenzhen Bao’an Airport and Bangkok Suvarnabhumi Airport three times a week with a same-day return starting May 28.

JD noted that this end-to-end fully self-operated and full-link transportation route will not only greatly increase the speed of cross-border freight, but also provide vigorous support for the development of cross-border business through both Thai and Chinese e-commerce channels, including JD.com and JD’s joint venture in Thailand, JD Central (JDC). 

“We’re excited that JD and JD Central can support SMEs to build robust business between China and Thailand,” said Korlarp Suwacharangkul, Chief Marketing Officer of JD CENTRAL. “We’ve seen that cross-border e-commerce between the two countries has huge potential for expansion.” 

Currently, goods exported from China to Thailand through JD’s route are expected to mainly include daily necessities, small household appliances, 3C products, and other e-commerce goods; while goods transported from Thailand will mainly comprise fresh produce, supplemented by industrial products such as auto parts. 

Increased trade between China-Thailand

JD noted that in the past year, China has further opened its market to foreign goods by implementing beneficial policies with an aim to facilitate robust cross-border trade. 

JD has also ramped up efforts to support cross-border e-commerce. It said as of end-December, JD International Logistics has 32 bonded warehouses and overseas warehouses, with a total management area of approximately 440,000 square meters.

JD has established international routes covering more than 220 countries and regions, providing customers with integrated cross-border supply chain services.

Meanwhile, according to the company’s prospectus, JD Logistics will utilize the proceeds from its IPO to upgrade and expand its logistics networks; develop advanced technologies to be used in its supply chain solutions and logistics services; expand its existing solutions, and for penetrating existing customers and attracting new ones, among others.