Cainiao boosts air freight network from Kuala Lumpur hub

by Payload Asia

Cainiao Network, the logistics arm of Alibaba Group, is expanding its air freight network from its fulfillment hub at Kuala Lumpur airport (KUL) in Malaysia with the launch of new export routes.

First phase will see the launch of a new service to connect Kuala Lumpur to London three times each week, with a cargo capacity up to 300 kilograms per trip. Cainiao will also offer direct flights from Kuala Lumpur to Hangzhou in China five times a week, with a cargo capacity of 23,000 kilograms or 23 tonnes per trip. A spokesperson from Cainiao said Malaysian Airlines will operate the UK trips, whilst YTO Cargo Airlines will fly for Hangzhou.

The launch of the direct export flights from Malaysia to the United Kingdom is expected to reduce air freight time by approximately 30 percent, from 19.5 hours to 13.5 hours, and reduce logistics cost by up to 10 percent. Flights from the Cainiao Aeropolis eWTP Hub will service both B2B and B2C businesses on eBay.

Meanwhile, the direct flights from Malaysia to mainland China will increase air freight stability and decrease overall logistics cost by 6 to 10 percent, Cainiao noted, helping B2B exporters outside the Alibaba ecosystem to gain access to the Chinese market.

Subsequent plans to expand this network of direct flights from Malaysia to other markets are underway, including Singapore, Brunei, Sydney, Auckland, and other key ASEAN and European markets.

Cainiao pointed out that exporters outside Malaysia can also ship their goods to the Kuala Lumpur hub for transit before exporting them overseas, reducing clearance time by up to 97 percent, from 24-48 hours to 1.5 hours, using digital customs clearance systems.

With 1.1 million square metres of warehouse space, the Cainiao Aeropolis eWTP Hub contains facilities for cargo terminal operation, warehousing, sorting, and a dedicated digital customs clearance. The project is a joint venture between Malaysia Airports and Cainiao that was launched in November last year.

Added comments from Cainiao spokesperson at the last line of the 2nd paragraph