May 17, 2020

Jade Cargo suspends air freight operations indefinitely

Supply Chain Digital
Air freight
Asia-Pacific Market
Jade
Freddie Pierce
2 min
A slumping Asia-Pacific market and heavy competition has Chinese air freight company Jade Cargo in hot water
Air freight demand in Asia has reached such a critical low that Jade Cargo International has temporarily grounded its cargo fleet to cope with increasi...

Air freight demand in Asia has reached such a critical low that Jade Cargo International has temporarily grounded its cargo fleet to cope with increasing deficits.

Jade Cargo, which operates out of Shenzhen Bao’an International Airport in China, currently operates a fleet of six Boeing 747-400ERF aircraft.

“The temporary suspension of Jade Cargo services is due to overall weak air cargo demand,” a statement on the company’s website read. “It will also provide the shareholders with an opportunity to coordinate with stakeholders to continue with the restructuring of the company’s financial structure.”

Jade Cargo has yet to give a date in which operations would resume.

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The interesting part of all this financial shakeup is that the company is jointly owned and operated by three different companies. Shenzhen Airlines owns 51 percent of Jade Cargo, Lufthansa Cargo in Germany owns 25 percent, while DEG owns the remaining 24 percent.

Lufthansa has been perhaps the most vocal of the bunch, and is on the record as saying that the company wouldn’t rule out selling shares of its stake in the struggling air cargo company if profits remain low.

“We shall withdraw from loss-making units without a reasonable turnaround perspective,” Lufthansa CEO Christoph Franz said in October.

That lack of support could prove to be the undoing of the struggling air freight company. There are several players in the Asian market, making it difficult to compete. While Jade Cargo is one of the region’s major players, it wouldn’t be surprising to see this temporary fleet grounding prove to be the prelude of much more drastic measures.

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Jun 17, 2021

Cainiao Network Launches Customer-Centric Logistics

Cainiao
Alibaba
Logistics
Tmall618
3 min
Cainiao will focus on the customer experience in Singapore and Malaysia during its Tmall 618 Mid-Year Shopping Festival

As the logistics division of the Alibaba Group, Cainiao Smart Logistics Network has decided to provide its Southeast Asian customers with unsurpassed service during its annual shopping festival. Based on customer feedback surveys, the company will expand its real-time customer service support and speed up delivery times. ‘By expanding and deepening our services, we aim to provide a stronger logistics infrastructure that can bolster the booming eCommerce sector, support merchants’ expansion into new markets and diversify retail options for consumers’, said Chris Fan, Head of Cross-Border, Singapore, Cainiao Network.

 

Who Is Cainiao? 

According to TIME Magazine, Cainiao ‘is far from a typical logistics firm’. The company controls an open platform that allows it to collaborate with 3,000 logistics partners and 3 million couriers. This means that merchants can choose the least expensive and most efficient shipping options, based on Cainiao’s real-time logistics analytics. The company’s goal is to ship packages anywhere in the world in under 72 hours—and for less than US$3.00. 

 

For countless small business owners around the world, from coffee-growers to textile-weavers, this could change everything. Usually, it costs about US$100 to ship a DHL envelope from Shanghai to London in five days. Cainiao aims to change that. Said its CEO Wan Lin: ‘The biggest barrier to globalisation is logistics’. 

 

What’s Part of the Upgrade? 

Throughout the Tmall festival, Cainiao’s logistics upgrade will be divided into four critical segments: 

 

  • Real-time customer service support. Cainiao has launched a direct WhatsApp channel for customers to receive logistics updates and ask questions. 
  • Expansion of air freight parcel size and weight limits. Packages can now be up to 30 kilograms or 1-metre x 1.6 meters to help ship large items such as furniture. 
  • Daily air and sea freight connections. Shipping frequency will almost double to seven times weekly to maintain resilience and efficiency. 
  • Compensation for lost or damaged packages. Customers will be reimbursed up to RMB 2,000 (US$311). 

 

Where is the Company Headed? 

From June 1st to June 20th, the finale of Tmall, Cainiao will ensure that its customers feel confident in the company’s ability to deliver their packages. Despite global shipping delays due to COVID, the show will go on. Said Fan: ‘This series of customer-centric logistics upgrades reaffirms our goal of pursuing value-added services to enhance customers’ shopping experience while mitigating challenges posed by external factors’. 

 

Furthermore, Cainiao has recently expanded its Southeast Asian operations, achieving revenue growth of 68% year-over-year. In Malaysia, the logistics operation has partnered with BEST Inc. and Yunda; in Singapore, the company has partnered with Roadbull, Park & Parcel, and the Singapore Post. And if its recent measures help retain and grow its customer base, the company will be well-poised to lead the industry in resilient and customer-centric global logistics. ‘COVID-19 made everyone realise how important the logistics infrastructure backbone is’, said Wan. ‘And it gave us a peek at what Cainiao should look like in three years’. 

 

 

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