Cainiao and Volga-Dnepr expand freighter partnership

Alibaba logistics subsidiary Cainiao Network is expanding its air freight capacity partnership with Volga-Dnepr Group (VDG), in response to growing demand from cross-border e-commerce shipments that has accelerated due to the Covid-19 pandemic.

The two companies, which have been working together since 2018, have opened up a new cargo route from China to Europe “to accelerate cross-border logistics”. The new service launched yesterday, with VDG subsidiary AirBridgeCargo Airlines (ABC) operating its first regular Hong Kong-Madrid two-way flight for Cainiao. ABC’s Boeing 747 freighter carried over 100 tonnes of parcels, all of which contained high-tech products and consumer goods exporting from the sellers on AliExpress e-commerce platform.

Expansion to three per week

Starting as a weekly frequency, the flights will be gradually increased to three per week in August, with the flights also connecting via Liege Airport in Belgium – “another popular ecommerce destination within VDG’s network”, the Russian cargo airline group said.

VDG noted: “The new route will support cross-border deliveries, which have been booming for the last years and intensified during the Covid-19 lockdown period when consumers refocused from offline to online shopping.”

The group said its carriage of e-commerce volumes had tripled during the first five months of 2020.

Volga said the parcels “will be quickly distributed all over Europe after arriving in Liege and Madrid, through Cainiao’s network of trucking and terminal distribution in Europe, ensuring the delivery timeframes of the whole process from China to Europe are kept within 10 days”.

It said Madrid would complement ABC’s existing destinations in northern Spain via its flights to Zaragoza, “while offering the options to deliver to southern and central Spain from the Hong Kong catchment area”.

Tatyana Arslanova, executive operating officer for Volga-Dnepr Group, commented: “Since 2018, we have been closely working with Cainiao Network to develop fast, flexible, and cost-efficient solutions. This included expansion of our network, realignment of commercial and operational issues, choice of the most appropriate freighter type, and introduction of digital solutions.

E-commerce volumes have tripled

“Starting from An-124-100, we have then begun operating other freighters within the group for Cainiao to guarantee a greater choice and convenience through our ‘CargoSupermarket’ concept. We will further support Cainiao with the fleet of best-in-class 39 freighters to accommodate e-commerce volumes, which have tripled within the group for the first five months of 2020 and reached the level of 20,000 tonnes.”

William Xiong, Cainiao’s chief strategist and general manager of export logistics, commented: “Cainiao has been working with partners globally to raise logistics efficiency and optimise user experience. This year, Cainiao plans to launch 1,260 chartered flights to safeguard cross-border logistics and help Chinese merchants sell globally.”

As reported in Lloyd’s Loading List, the Alibaba’s logistics unit Cainiao Network last month unveiled plans to invest RMB 1 billion (US$140m) in more flights and overseas warehouses with the aim of speeding up deliveries from China to destinations worldwide. The move is part of the group’s long-term strategic aim of offering package deliveries inside China within 24 hours and across the globe within 72 hours. 

Cainiao plans to quadruple its number of chartered flights to 1,260 from 260 over the next nine months – to around 35 per week – to reduce delivery times from 7-10 days to 3-5 days.

In May, it was reported that Cainiao and Chinese freight forwarder Sinotrans had forged a partnership with Atlas Air in which the airline will operate weekly B747-400F flights from Hong Kong to Sao Paulo, Brazil, and Santiago, Chile, with other routes to follow.

Founded in May 2013, Cainiao Network Technology is a technology and logistics affiliate of Alibaba Group. It adopts a collaborative approach to logistics with an open data platform that aims to improve efficiency and customer experience for all players along the supply chain.