Hyundai Logistics partners with Alibaba courierThe growing popularity of cross-border shopping has prompted logistics companies to form transnational partnerships to speed up e-commerce deliveries.
Hyundai Logistics, the country’s second-largest shipping company, has become the latest to jump on the bandwagon. It forged a partnership on Tuesday with ICB, the official agency of Alibaba’s courier service Cainiao, to handle Korean products ordered though Alibaba’s T-Mall and shipped to China.
Korean cosmetics and fashion items are growing in popularity on the Tmall Global platform, an extension of Tmall.com. Tmall Global carries foreign brands exclusively, including some owned by Korean beauty companies Amore Pacific and LG Household & Healthcare.
Under the agreement, the shipping company will be responsible for each part of the delivery process from Korea to China in cooperation with ICB, from loading items onto trucks and storing them, to getting them through customs and transporting them by air.
“We will deliver the goods to China in bulk,” said Park Hyun-cheol, a public relations official at Hyundai Logistics.
“Cainiao has large logistics centers across China,” he said. “Hyundai Logistics will get the Korean goods to those centers and then Cainiao will deliver them to smaller Chinese villages.”
Park said the agreement, which will simplify the complex logistics chain between China and Korea, will result in quicker deliveries in large quantities and reduced costs.
Lee Jae-bok, CEO at Hyundai Logistics and Lee Han-yong, head of ICB, attended the signing ceremony held at the headquarters of Hyundai Logistics on Tuesday.
“Keeping pace with Chinese consumers’ surging interest in cross-border shopping,” said the CEO, “we will offer advanced transnational shipping service through the development of sophisticated technology and bold investment.
“With this goal, we aim to be the No.1 company to handle parcels bound overseas.”
CJ Korea Express has a solid No. 1 spot in the market with a share of more than 30 percent. The shipping company also is looking at setting up a cross-border delivery service.
CJ Korea Express signed an agreement with two of China’s logistics giants - YTO Express and Cainiao - to launch a cargo airline that will ship goods sold by Tmall Global.
BY PARK EUN-JEE [email@example.com]