Chinese ecommerce giant Alibaba has established its logistics business in the Japanese market through its logistics arm Cainiao. The new establishment will provide comprehensive logistics services to importers and exporters in the country.
Brittain Ladd, chief marketing and supply chain officer at Pulse Integration, told the media, “Alibaba is moving as fast as possible to expand into 3PL services. Like Amazon, they understand that the big growth area for retail is in providing logistics services. Amazon has every intention of becoming a 3PL and Alibaba has to get ahead of this.”
Last month, the Chinese giant had launched its third-party logistics services in South Korea, in addition to an air charter service in North America. It is reported that the company is working to surpass the efforts of its rival Amazon in extending end-to-end logistics services. These services will be beyond its own delivery requirements to other companies.
The logistics arm is using a cloud-based platform to connect cargo owners and transport service providers, media reports said. By the numbers, there is more than 162,000 square feet of warehouse space located near the Incheon International Airport, along with Incheon and Buson ports.
It is reported that China is South Korea’s largest trading partner. The country accounts for $160 billion, or 26 percent of total exports, while imports are worth $107 billion, or 21 percent of the total. Cainiao will handle global shipments with six container vessels and six cargo planes each week.