News / Cainiao and Shandong Port launch express China-South Korea service

Source Cainiao

Alibaba’s logistics arm, Cainiao, today launched an express China-South Korea service to ship merchandise bought on the e-commerce platforms.

The China-South Korea Daily will see around 20 40ft containers moving on Weihai Jiaodong International Container Shipping’s ro-ro ferry, New Grand Peace, between Weihai in Shandong province and South Korea’s Pyeongtaek port. The service involves six 13-hour trips a week.

Cainiao was prompted to sign up with Weihai Jiaodong after shipments to South Korea saw triple-digit growth in the first six months of the year.

Pyeongtaek is 75km from Seoul and the new service means consumers can receive their packages within three days of purchase.

To provide further support, Cainiao and its affiliated e-commerce platform, AliExpress, have expanded capacity at the group’s warehouses in Weihai and neighbouring city Yantai by more than 30,000 sq metres.

Express logistics is estimated to grow at 4.9% annually in the next 20 years, driven by e-commerce. And demand for speedy deliveries has grown, so Cainiao has also launched Priority, an air freight service of 14 weekly chartered flights from China to Europe, the US and South America, guaranteeing deliveries in more than 48 hours.

In May, Cainiao confirmed plans for an initial public offering on the Hong Kong Stock Exchange, with a fundraising target of $2bn.