Alibaba's Logistic Arm Quadruple Fleet of Chartered flights Over the Next Nine Months

June 27, 2020 11:52 pm

Beijing (PingWest)- Cainiao Network Technology, the logistic unit of Alibaba Group Holding, will quadruple Cainiao’s fleet of chartered flights from 260 to 1,260 over the next nine months, which would lower its average international airfreight delivery time down to three to five days from the current timeframe of seven to 10 days.

The plan is part of Cainiao’s three-year global initiative to improve efficiency for logistics, Cainiao aims to cut its deliveries time within 24 hours in China and 72 hours globally.

According to Cainiao Logistic president Wan Lin, Caoniao will invest at least 1 billion in its logistic network to increase chartered flights, build out warehouse facilities and expand partnerships with customs authorities around the world.

“Our investment to establish a global smart logistics network, including international shipping routes and warehousing facilities, will provide businesses with greater operational efficiency, cost savings, transparency and accuracy in their supply chain management,” Wan Lin said in Cainiao’s annual industry summit, which was held online for the first time on June 23.

Meanwhile, Cainiao said it will also double the floor space of its overseas warehouses to 2 million square meters. As a result, small and medium-sized businesses will also be able to leverage the additional warehouse space to pre-stock their products for export and fulfill their order faster. Cainiao estimates that the bigger warehouses space will ensure 90% of orders shipped from China arrive in less than 72 hours to some 100 cities globally.

Additionally, Cainiao also announced plans to open 30,000 additional post stations at residential neighborhoods and university campuses across 100 Chinese cities.  

Previously, Cainiao said it has increased its overall shipping speed with some products delivered in under an hour to support the expected surge in online shopping demand during the 618 festival.