Cainiao launches Asia-South America charter programme as volumes boom

E-commerce logistics specialist partners with Atlas Air to provide dedicated freighter capacity linking China with Brazil and Chile, as volumes transported in Q3 doubled compared with the previous quarter.

Cainiao Smart Logistics Network, the logistics arm of Chinese e-commerce giant Alibaba, is partnering with US air cargo group Atlas Air Worldwide Holdings, (AAWW) to launch a China-South America charter programme, “to enhance Alibaba’s extensive logistics network as cross-border trade between China and Latin America continues to expand”.

Cainiao said its parcel volumes to South America reached over 8 million packages in the third quarter of 2020, “double the number transported during the second quarter of this year”.

Beginning in November, Atlas Air will operate three weekly charter flights dedicated to Cainiao, linking China with Brazil and Chile, “reducing the overall shipping time from a week to three days, on average”, Cainiao said.

William Xiong, Cainiao’s Chief Strategist and General Manager of Export Logistics, commented: “Our partnership with Atlas Air will help us establish an efficient, reliable network to South America and other worldwide destinations by significantly reducing airfreight delivery time for the merchants we support. We continue to invest in our network to support Alibaba merchants operating over 100,000 online shops.”

Atlas Air Worldwide President and Chief Executive Officer John Dietrich commented: “We are excited to support Cainiao and Alibaba’s fast-growing e-commerce business and its global expansion in South America, and we look forward to developing our partnership further. The global scale of our operating networks will enable Cainiao to continue to enhance its logistics capabilities and meet its objectives to offer customers faster deliveries globally.”

Rapid expansion

Cainiao said the company was “committed to facilitating international trade by improving overall supply chain efficiency and launching direct routes to major regions across the globe”. Cainiao is expected to operate about 1,300 chartered flights by the end of 2020.

In June, Cainiao unveiled plans to invest RMB 1 billion (US$144 million) in more flights and overseas warehouses with the aim of speeding up deliveries from China to destinations worldwide. The move is part of the group’s long-term strategic aim of offering package deliveries inside China within 24 hours and across the globe within 72 hours. Cainiao has its sights on increasing its number of chartered flights to 1,260 from 260 over the next nine months – to around 35 per week – to reduce delivery times from 7-10 days to 3-5 days. For example, in June Cainiao teamed up with Air China Cargo to operate a new cross-border e-commerce route between Hangzhou and Liège, in Belgium, using B777 freighters, with the aim of speeding up delivery times between China and Europe.

Founded in 2013, Cainiao Smart Logistics Network describes itself as “a technology company and the logistics affiliate of Alibaba Group”. By adopting “a collaborative approach to logistic”, with an innovative and open data platform”, it aims to “carry forward Alibaba’s mission of making it easy to do business anywhere by aiming to deliver anywhere in China within 24 hours, and across the globe within 72 hours”.

Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services and is the parent company of Atlas Air, Inc., Southern Air Holdings, Inc. and Titan Aviation Holdings, and is the majority shareholder of Polar Air Cargo Worldwide. Its companies operate the world’s largest fleet of Boeing 747 freighter aircraft, Boeing 777, 767 and 737 aircraft for domestic, regional and international cargo and passenger operations.

Source: Lloyd’s