AIR CARG O WEEK


E-COMMERCE


U-Freight has expanded the autonomous mobile robot and intelligent racking system at its Hong Kong EFC.


U-FREIGHT’S EPLUS SUPPORTS SMALL E-COMMERCE RETAILERS


AIR CARGO STAKEHOLDERS ARE QUICKLY ADJUSTING TO MEET THE CHANGING DEMANDS OF THE RAPIDLY EXPANDING E-COMMERCE INDUSTRY.


F Nick Keller


orwarding and logistics companies are developing new services to bring smaller e-commerce players the ability to participate competitively in cross-border markets. For example, U-Freight Logistics’ e+Solutions (ePlus) product allows small online retailers with limited


resources to buy space in U-Freight’s e-commerce fulfilment centre (EFC) in Hong Kong, offering a comprehensive e-commerce logistics package, from dedicated storage space for products to order processing and fulfilment services. “Retailers’ inventory is managed via an app, and we deliver to their


customers,” Rick Keller chief executive officer of U-Freight America explains. “Sixty percent of people start with one bin, and within six to 12 months they are taking an entire shelf system.” U-Freight intends to expand ePlus in the future. For instance,


Tokyo would be a perfect market for the product, Keller says. More generally, U-Freight wants to grow its presence in southeast


Asia, the Middle East and Africa, and planned to add automation to its facilities in Los Angeles and Chicago in 2024.


Suitable robotics Research into suitable robotics is currently in progress. In 2023, the company finished expanding the autonomous mobile robot and intelligent racking system that was installed two years ago at its 2,000 sq m eCommerce fulfilment centre (EFC) in Kwai Chung, Hong Kong. In addition to the USA, U-Freight has fully functioning EFCs in


Hong Kong (where e-commerce accounts for approximately 40% of its revenue), Penang, Incheon, Amsterdam and Heathrow. It is planning to turn its existing hubs in Japan, Shanghai and Thailand into full EFCs, too. Both airfreight and ocean freight transport have become “more


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complicated” since e-commerce has begun taking up so much space, points out Keller. “For example, rates from Asia to Europe or the US during peak seasons are very high. “There’s no real bottleneck with the airlines for e-commerce


though; it’s more challenging for traditional cargo customers [to find capacity], because e-commerce pays more.” At U-Freight, Keller wants to see ocean e-commerce traffic and


revenue increase and become more consistent. “People don’t tend to think of ocean freight as being used for e-commerce shipments, but customers purchasing significant volumes from factories will ship via ocean to their distribution centres and then from there to the end customer, hybridising the e-commerce product,” he observes. “Even Amazon does this. It depends on the product – if it’s heavy,


you’ll tend to use ocean freight, while retailers selling smaller products often use airfreight to supply direct to the end customer.” Thus, U-Freight uses direct injection into the mail or last-mile


delivery system in some locations, such as South America, while elsewhere it holds stock in its warehouses for


fulfilment, as it


does in Amsterdam. The latter model also works for a high-density population like Hong Kong. e+Solutions, recently collaborated with Airport Authority Hong


Kong (AAHK) on the production of a new corporate video, titled “Hong Kong – An Ideal eCommerce Logistics Hub.” This video aims to highlight Hong Kong’s unique advantages as


a global logistics centre and attract more companies to utilise its infrastructure for e-commerce operations. By participating in this initiative, e+Solutions aims to foster


closer relationships with AAHL and the other stakeholders, promoting mutually beneficial partnerships that contribute to the growth of the global e-commerce ecosystem.


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