New Cainiao freight flights to cut logistics costs from Lazada to East Malaysia by -50%
CHINA / MALAYSIA. Alibaba Group’s logistics arm, Cainiao Network, announced the launch of direct air freight from China to East Malaysia to improve cross-border logistics of the Lazada e-commerce platform. The company said the move was made to improve the efficiency and stability of delivery amid growing consumer demand.
Three times a week, there will be direct flights to Kota Kinabalu and Kuching in the Malaysian states of Sabah and Sarawak, respectively.
Cainiao noted that this will reduce logistics costs by more than -50 percent for customers in Sabah and Sarawak. This will reduce the average delivery time from two days, from 14 to 12 days or up to seven days.
Previously, shipping to destinations in East Malaysia such as Sabah and Sarawak typically involved multiple modes of transport. This included freight transport to Kuala Lumpur, a domestic flight to Kota Kinabalu or Kuching, followed by last mile courier delivery to consumers’ doors.
“In the context of growing consumer demand and increased competition among online retailers, superior logistics services will continue to be the key differentiator for merchants to improve the customer experience and establish their competitive advantage ”- Cainiao Executive General Manager and Chief LazGlobal Logistics Officer Shawn Louis
Cainiao pointed out that currently, pandemic and movement control restrictions on international and domestic commercial and cargo flights have further lengthened delivery times and exacerbated delivery problems.
To instill greater long-term shipping stability and deliver higher levels of customer experience, Cainiao and Lazada have worked together to establish a comprehensive cross-border logistics network in Malaysia. With a stable and transparent logistics value chain, Malaysian customers can now access a wider range of global products from countries such as China, South Korea and Japan.
Shawn Louis, Executive Managing Director of Cainiao and Logistics Director of LazGlobal, said: “Industry data revealed Malaysia’s e-commerce is expected to more than double from US $ 6 billion to US $ 13 billion. dollars from 2020 to 2025, with 61% of cross-border e-commerce purchases originating from China. .
“In the context of growing consumer demand and heightened competition among online retailers, superior logistics services will continue to be the key differentiator enabling merchants to improve the customer experience and improve customer experience. ” establish their competitive advantage.
He added, “In our efforts to further streamline the logistics value chain and provide a more efficient and transparent shipping service to end consumers, we have launched a direct air freight route to East Malaysia, effectively eliminating air freight. domestic and land transfers.
“This logistics upgrade will benefit consumers in East Malaysia, as they can now enjoy the same delivery times and shipping costs as those in West Malaysia.”
The latest logistics improvement announcement comes after the start of operation of the Cainiao Aeropolis eWTP Hub, an e-fulfillment hub located at Kuala Lumpur International Airport (KLIA), in November 2020.
The movement aims to shape Malaysia into a major regional player for e-commerce distribution and a leading air cargo gateway in ASEAN. The first customer to take advantage of the hub’s facilities was Lazada.
Lazada operates in Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam, providing logistics, retail technology and payment services solutions to its vendors.