- Saudia Cargo gets e-commerce lift from Cainiao
- Cooperation pact with Hong Kong-based logistics firm Cainiao Network enables Saudia Cargo to achieve “significant growth” in e-commerce shipments
- Thriving Asia-Europe “sky bridge” allows Saudia Cargo to benefit from opportunities arising from the growing global e-commerce market
A cooperation agreement last year with Cainiao Network, the logistics arm of Alibaba Group, has enabled Saudia Cargo to achieve significant growth in e-commerce shipments this year, Hong Kong-based Cainiao said in press release on April 29.
The agreement created a thriving “sky bridge” between Asia and Europe, allowing the freighter service to gain from opportunities arising from the growing global e-commerce market.
Cainiao joined Saudia Cargo’s flight program in March 2021, linking Hong Kong SAR to Liege, Belgium, via Saudia Cargo’s Riyadh hub, with 12 flights operated per week.
The freighter flight enables Riyadh to become the model of an effective distribution hub in the Middle East, thanks to strong partnerships the company has forged with local players.
“The agreement has allowed us to benefit from access to Alibaba’s e-commerce platform as online shopping continues to soar, boosted in part by the Covid-19 pandemic,” said Vikram Vohra, Saudia Cargo’s regional director for Asia Pacific.
“The partnership with Cainiao, which offers logistic services to more than 200 countries, is central to our growth strategy for this decade and sets the template for future cooperation agreements. Cainiao has become a trusted and valued partner.”
Dandy Zhang, commercial director of Global Line Haul, Cainiao’s cross-border business, said Cainiao has been consistently enhancing its logistics services and efficiency to satisfy the booming demand for e-commerce in Europe and Middle East.
“Our partnership with Saudia Cargo has been fruitful, and we look forward to strengthening our cooperation in the long term,” Zhang said.
Saudia Cargo has increased the number of flights it operates to destinations in the Middle East, Africa, Asia, Europe and North America over the past few years to ensure it continues to meet rising demand for e-commerce and deliver on Saudi Arabia’s ‘Vision 2030’ strategy for growth.
The company has expanded its haulage capacity from last year, adding and improving its space and tonnage capacity to haul e-commerce goods on different routes. The number of flights from Hong Kong alone grew more than 30%.
The pandemic has revealed the urgent need for cargo services as the e-commerce sector saw a dramatic rise during the crisis, with a forecast increase of 19% worldwide on e-commerce revenue between pre- and-post COVID-19 timeframes in 2020.
Saudia Cargo announced several measures to ensure the continuity of its operations and the increase in flights was part of its services with Cainiao.