Cainiao Network has launched direct cargo flights last week between Zhengzhou and Budapest, Hungary to meet the growing consumer demand in Eastern Europe. The service, which started on 14 May, will operate five times each week with 17 tonnes of capacity each day.
Cainiao, together with local customs bureau and logistics partners, has also developed a digitalised customs clearance system to cut the average process time to 6 hours. Hungary will be the first country in eastern Europe to use the system, the company noted.
The Alibaba logistics arm expects volumes between China and the region, particularly Hungary and Poland, to grow 30 percent by year end, with booming demand from local consumers purchasing fashion items, home appliances and electronic accessories from the mainland.
Cainiao’s April volume to eastern Europe rocketed 53.7 percent compared to the same period last year, and chief strategist William Xiong said the company is committed to improving efficiency between China and Central and Eastern Europe by offering its US$5 for 10-day delivery service soon.
With the company’s trucking network now covering 10 countries in Eastern Europe, Cainiao expects to cut delivery time by 20 percent. Local partners Hungarian Post and Polish Post, who will directly transport Chinese goods upon arrival at Budapest Airport, will be key to make this happen.
At present, the US$5 10-day delivery service covers Spain, France, the Netherlands, Belgium, the UK, Germany, Portugal and other European countries, and will be rolled out in over 10 more countries by year-end.