CHINA/SOUTH KOREA. Cainiao Network, the logistics arm of Alibaba Group, has announced the launch of a direct sea freight route between China and South Korea.
The move comes as parcel volume to South Korea from AliExpress, the global retail online marketplace owned by Alibaba, increased by nearly +100% in the second half of 2021 compared to the same period last year.
Freight ships chartered by Cainiao will sail six times a week, allowing Korean consumers to receive parcels in three to five days for selected products after placing orders on AliExpress.
After leaving ports in Shandong Province, the cargo ship will arrive in South Korea within 12 hours, reducing existing shipping costs by up to -30%.
“The launch of a direct sea freight route will accelerate the overall shipping efficiency from China to South Korea, further fuelled by our full-chain logistics services” – Cainiao Chief Strategist and General Manager of Exports Logistics William Xiong
According to 2019 data shared by Cainiao, China was the largest import partner for South Korea, with a 22.2% share or US$108 billion.
This figure had grown by +105% from a decade before in 2009, at 17.2 per cent share or US$52.6 billion.
Cainiao said that part of this growth can be attributed to rising ecommerce demand in South Korea, where AliExpress insights revealed that the most popular items are cosmetics and 3C (computer, communication and consumer electronics) devices. This, the logistics company observed, is largely driven by competitive pricing and fast shipping.
Cainiao Chief Strategist and General Manager of Exports Logistics William Xiong said: “The launch of a direct sea freight route will accelerate the overall shipping efficiency from China to South Korea, further fuelled by our full-chain logistics services including digitalised customs clearance and last mile delivery.”
Cainiao’s distribution centres are able to handle a peak volume up to ten million orders, with a cross-border network spanning over 200 Chinese cities and more than 50 warehouses located in key cities to support exports.
In October 2020, Cainiao announced the launch of its logistics and supply chain services to support South Korean businesses. Leveraging its logistics technology and platform, Cainiao said it is able to connect merchants to logistics service providers to achieve greater cost efficiencies.
In June 2021, to further promote bilateral trade between South Korea and China, Cainiao signed an MOU with the Korea SMEs and Startups Agency (KOSME) to operate as the official logistics partner for small and medium-sized enterprises in South Korea.
