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Company has the flexibility to redirect cargo to truck services amid pandemic-led disruptions to ocean freights, without affecting customers’ shipping costs
CAINIAO Network, the logistics arm of Alibaba Group, said it has rolled out an ocean freight service between China and Thailand to facilitate online shopping and cut transport costs.
The move comes as the Chinese e-commerce giant is expanding its direct involvement in container shipping amid scarce vessel slots and elevated freight rates triggered by the coronavirus pandemic.
Operating three times a week, the service allows Thai consumers to receive parcels in as little as 15 days for their products ordered on Alibaba’s online shopping platforms Tmall and Taobao.
Parcels destined for Thailand will first be sorted in Cainiao’s consolidation warehouse in Yiwu, China before being transported to the port of Ningbo.
Upon arrival in Bangkok port, the parcels will be handled by Cainiao’s logistics partners for local distribution and delivery.
Move comes after Alibaba introduced its own China-US west coast express service with chartered vessels in the past month
The seaborne solution, launched in addition to the existing trucking service to Thailand, can reduce the transport costs by almost 50%, from $2.60 per kg to $1.40 per kg.
“The economy service was launched after assessing local consumers’ preference for more economical shipping options, coupled with their purchasing behavior which typically reflected higher purchasing frequency of small and light items online,” said Cainiao. “The provision of a cheaper shipping option meant that the shipping cost remains small relative to the item cost, thereby reducing the barriers to purchase.”
It is not sure whether the service is offered using self-chartered vessels to avoid a volatile freight market where vessel slots are in short supply.
A spokesperson said the company normally aggregate cargo with other merchants to maximise space utilisation to offer the best shipping rates.
“That said, amid the current disruptions and supply shortage, we have the flexibility of redirecting goods to be delivered by trucks in the event of any disruptions, and without impact on customers’ shipping costs.”
Cainiao last year introduced a direct ocean service between China and South Korea for similar purposes.
Alibaba recently introduced a China-US west coast box shipping express service with chartered vessels, providing about 3,000 teu of weekly capacity and involves 15 days of transit to Los Angeles.
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Subject: Alibaba’s Cainiao launches China-Thailand ocean freight service
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This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call UK support at +44 (0)20 3377 3996 / APAC support at +65 6508 2430
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