JD Logistics is planning an air cargo company as it plans to expand its integrated supply chain services globally, the company’s CEO of logistics, Yui Yu, told Bloomberg in an interview.
Yu said the company has been recently approved by Chinese authorities, with plans to purchase or lease planes for cargo use.
“We purchase planes or lease them, and the cargo freight business should comply with local laws and regulations [of the countries we operate],” explained Yu when asked about the number of air cargo planes needed for a global operation. “By 2030, it won’t be less than 100 planes,” he added.
The executive believes that the Covid-incurred capacity shortage in shipping and air freight will only have a short-term impact and a return to normalcy is on the horizon, given how some of its partner companies are recovering and showing strong intentions on cross-border businesses.
The e-commerce giant is currently stepping up overseas investment in its warehouse network and high-tech logistics centres in China’s main trading partners.
JD Logistics is now operating air cargo routes including from Shenzhen to Bangkok, Nanjing to Los Angeles, Shanghai to New York and Hefei to London. The company also operates nearly a thousand cross-border transportation routes by sea, railway and trucks, with warehouses in the UK, Germany, the Netherlands, Australia and the Middle East.