Cainiao Adds New Malaysia Cargo Flights to Cater for E-Commerce Demand

Cainiao Network, the logistics arm of Alibaba Group, has announced plans to add new Malaysia charter flights as the country grows in importance as a regional e-commerce hub.

The first flight will operate between Kuala Lumpur and Shenzhen utilising a B737-300 aircraft operated by Central Airlines. In the future, the company plans to add more flights tHangzhou, Sydney, Singapore and Jakarta to support volume growth in Malaysia.

The Kuala Lumpur (KLIA)-Shenzhen chartered flight will operate three-times-a-week to deliver Malaysian products such as local produce and electronic products, directly to Chinese consumers in four hours.

“The chartered flights will increase airfreight stability amid cargo and commercial flight disruptions, and help businesses in Malaysia to tap on a wider Chinese market to facilitate economic recovery,” Cainiao said.

“Local businesses will also have the potential to export to the rest of Asia Pacific following the expansion of air freight routes in the near term.”

The move was made in response to growing exports from Malaysia to China, the company said.

Cainiao pointed to statistics from the Ministry of International trade and Industry of Malaysia showing that China remained the country’s largest export destination, with exports value expanding by 12.5% to $24.6bn in 2020 or 16.2% of total exports.

Shawn Louis, executive general manager for Cainiao said: “The launch of direct chartered flights will support the increase in trade flow from Malaysia to China and the broader APAC region.

“Here, the enhanced airfreight stability will play a key role in fostering economic development in Malaysia while also instilling greater resilience among SMEs.

“KLIA’s position as one of the leading distribution gateways in ASEAN, coupled with the smart logistics capabilities of the hub, will be instrumental in facilitating cross-border trade and serve as a regional center for SMEs to scale globally.”

Cainiao opened its Aeropolis eWTP Hub as a regional e-fulfillment hub located at the KLIA in November 2020.