News / Cainiao sets up HK-Liege e-commerce air link with Saudia Cargo and WFS

04/03/2024

Cainiao’s e-commerce sellers now have a freighter link from Hong Kong to Liege – via Riyadh as a technical stop – following the inauguration of a deal between the e-commerce logistics arm, Saudia Cargo and WFS.

WFS has agreed to handle more than 50,000 tonnes annually for the service and has leased the eHub, which includes three temperature-controlled facilities, at the airport, while Cainiao has invested in the logistics procedures and facilities.

WFS has pledged a three-hour transit time, bulk unitisation programme (BUP) within three hours of actual time of arrival and truck handling within 90 minutes.

Liege Airport has a reputation for flexibility, and one source at the inauguration event noted that the airport had welcomed ad hoc freighter flights, making it more attractive for carriers than the increasingly restricted Schiphol, which Saudia also serves. Liege also operates at night.

The partnership between the three companies will rely on data-sharing and technology for efficiency, explained Teddy Zebitz, CEO of Saudia Cargo.

“In an era where you can 3D-print houses and cars, we need to modernise this industry,” he said. “We need real-time track and trace from the start to the consumer, and we can only do that with partners which are sophisticated and willing.”

Thomas Yu, senior director for Cainiao, added, however, that “it’s not rocket science”.

“You need the right attitude, plus the right tools. We have a good design, which is easy to use. The ESP is our own system, which connects with Saudia – we don’t want everyone to have their own systems – that’s why Cainiao is advocating for ONE Record. Data-sharing is very important.

“Visibility is not one company’s problem – it’s about connecting data. Cainiao is a solution provider for end-to-end parcel delivery.”

Mr Yu said the operation was “not competing with the express industry – just another option”. He also noted that choosing the right carrier was important.

“Some airlines are not willing to have that sort of cooperation and collaboration. The most important point is that we are together, these are the opportunities for partners.”

Mr Zebitz added: “The value chain is extremely long and complicated. What we are trying to do now is create APIs. API is the future for common communications with stakeholders in the system.”

Mohammed Esa, EVP group commercial for WFS, said handlers were crucial in such partnerships.

“In this new way of doing things, the handler is just as important. What we are trying to do is see how we can work together. This is something we’d like to do more of. We are looking at repeating, replicating and scaling this.”