WEEKLY NEWS


AIR CARG O WEEK


LOGISTICS CAPABILITIES AMID SOUTHEAST ASIA’S E-COMMERCE BOOM


BY Ajinkya GURAV


THE e-commerce industry in Southeast Asia has been growing at an unprecedented rate, with the market projected to reach a staggering US$186 billion by 2025, up from US$139 billion in 2023. This growth is driven by rising internet penetration, increasing


smartphone usage, and a burgeoning middle class. However, this rapid expansion also presents logistical challenges, particularly in areas such as cross-border shipping, last-mile delivery, and managing costs efficiently. Aimed at capitalising on the rapid growth of e-commerce in


Southeast Asia, Singapore Post Limited (SingPost) and Cainiao have signed a Memorandum of Understanding (MOU) to collaborate on strengthening their logistics capabilities.


02


Regional hub One of the key focuses of the partnership is to strengthen Singapore’s role as a major air cargo transshipment hub for e-commerce goods. Singapore’s strategic location, world-class infrastructure, and well- established air and sea connections make it an ideal hub for facilitating trade between Southeast Asia, China, and other global markets. The collaboration between SingPost and Cainiao aims to enhance Singapore’s status as a logistics hub by increasing the flow of goods


through the country, benefiting not only Singapore’s economy but also the broader region. The development of innovative postal products for China and


Southeast Asia is also a core element of the partnership. As the two companies work together to develop new products and services, they will focus on improving the customer experience and meeting the evolving needs of the eCommerce market. This includes faster delivery times, more efficient shipping options, and a seamless end-to-end logistics process. At the heart of this partnership is also Cainiao’s advanced technology


platform, which is designed to streamline logistics operations by harnessing the power of data and automation. By integrating Cainiao’s technology into SingPost’s operations, the two companies aim to enhance operational efficiency across the logistics chain. This will not only improve the speed and reliability of deliveries but also help both companies better manage costs and resources. The collaboration is set to kick off with a pilot project in the coming


months, during which SingPost and Cainiao will assess the feasibility of various workstreams, including shipment consolidation, route optimisation, and new postal products. The outcome of the pilot project will likely shape the broader implementation of the partnership’s goals.


Enhancing efficiency The MOU between SingPost and Cainiao focuses on several key areas of


collaboration. One of the primary goals is to optimise delivery costs and boost volumes by integrating Cainiao’s advanced technology solutions with SingPost’s extensive logistics network. This integration will help consolidate shipments and optimise delivery routes, improving both operational efficiency and cost-effectiveness. In addition, the collaboration will enhance last-mile delivery


capabilities in Singapore and across the region. Last-mile delivery is one of the most critical and challenging components of the logistics chain, particularly in Southeast Asia, where geographic fragmentation and varying levels of infrastructure development can create significant obstacles. By combining SingPost’s deep local knowledge with Cainiao’s technological expertise, the two companies aim to streamline last-mile delivery processes, ensuring faster and more reliable deliveries to customers. As Li Yu, CEO, International, SingPost, noted: "Singapore's strategic


location and world-class infrastructure make it an ideal transshipment hub for the growing e-commerce sector in Asia. This collaboration with Cainiao aligns with our path of digitalisation and our focus on eCommerce logistics. By combining our strengths, we aim to enhance service quality for our customers." William Xiong, Senior Vice President of Cainiao Group, emphasised


the importance of these efforts: "Given the rapid growth of e-commerce in the Southeast Asian market, there is a rising need for greater efficiency and faster delivery. “We look forward to collaborating with partners like SingPost to


Did You Know ? BY Michael SALES


ABOUT THE FIRST TRANSATLANTIC FLIGHT intercom and


heating,


JOHN Alcock and Arthur Brown were British aviators who, in 1919, made the first non- stop transatlantic flight. A small amount of mail was carried on the flight, simultaneously making it


the first


flight. Their modified Vickers Vimy


IV twin-


engined bomber, took off from Lester's Field St.John’s, Newfoundland, for Clifden, County Galway, Ireland. The flight was beset with problems from the start, making it a miracle that they did not perish over the Atlantic. The heavily loaded aircraft carrying 3,900


litres (1.4 tonnes) of fuel, had difficulty taking off and only just cleared the tops of the trees. Shortly afterwards, the electrical generator


failed, cutting radio contact, an exhaust pipe


split next, causing a terrible noise, making conversation impossible. They then encountered dense fog, which flying


meant transatlantic airmail blind without gyroscopic


instruments, causing Alcock to lose control twice and nearly dive into the sea. On top of all this, a broken trim control made the aircraft nose-heavy and difficult to handle. Furthermore, when the generator failed,


cutting power to their electric heated flying suits, they had to struggle on, shivering in the open cockpit. At that point, Brown got a glimpse of the stars and was able to use his sextant, finding that they were on course. After flying into a snowstorm, which froze


their instruments and placed the aircraft in danger of icing up along with the carburetors, Brown reputably climbed out onto the wing to clear the problem. Finally, at 8:40 a.m.


on 15th June 1919, after less than sixteen hours' flying time, the two pilots in their partially wrecked machine, landed in a peat Bog, near Clifden in County Galway in Ireland. The epic flight over the North Atlantic


covered 1,890 miles (3,040 kilometres) in 15 hours and 57 minutes and at an average speed of 115 mph. After this event, an increasing number of long-distance flights were developed and, 105 years later, after that modest start of a few letters, some 60 million tonnes of air cargo are now transported every year.


contribute to a robust e-commerce logistics ecosystem. By integrating our technology with SingPost’s network, we aim to provide reliable logistics solutions that support global connectivity, facilitate trade between Southeast Asia and the rest of the world, and strengthen Cainiao’s presence in Asia Pacific.”


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ACW 23 SEPTEMBER 2024


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