Teleport aims to further build up its e-commerce air cargo business between China and southeast Asia with next-day services.
The Malaysia-based logistics provider said it is working on cutting the delivery times for e-commerce shipments between China and Southeast Asia through its air network.
Speaking during Teleport’s first media briefing in China on June 20, Janson Peng, commercial country head at Teleport China, said: “Today’s standard service level for e-commerce marketplaces to move cross-border parcels from China to consumers in Southeast Asia is approximately five days.
“One, to one and a half days for merchants to pack their parcels to reach the warehouse, and about four days between warehouse in China to destination warehouse in Southeast Asia. We have the ability to cut down the four-day delivery time between China and Southeast Asia, to as fast as the next day, affordably.”
Teleport was established in 2018 by consolidating belly capacity of all AirAsia airlines under a single network. Teleport also has added capacity from third-party airlines.
The company is currently in the process of adding 10 A321 passenger-to-freighter (P2F) aircraft. Teleport currently has three A321Fs in service and expects all 10 aircraft to be delivered by the end of this year.
Having operated in China since 2019, Teleport’s air logistics network now connects shipments from 19 cities in China and 85 cities in Southeast Asia.
Janson added: “Today, we are operating at a flight frequency of 2214 flights a month – which effectively makes us number one in terms of the most flight frequency out of China into Southeast Asia cities; and with the most number of China airports able to directly connect to Southeast Asia cities – connecting 19 cities in China into over 85 cities throughout Southeast Asia. This includes secondary and tertiary cities across the region, giving businesses in China that added coverage that would not necessarily be reached via traditional flight routes.
“Furthermore, our network allows our customers to move through the region to reach other markets, serving as the perfect transhipment hub to connect Chinese businesses to other major markets such as Oceania, Middle East, Europe and the US.”
To better serve the China market, Teleport plans to continue to strengthen its on-ground first-mile capabilities and expand to more cities, including across the Greater Bay Area, with priority custom lanes.
Teleport noted that key e-commerce lanes between China and the top five Southeast Asia countries, namely Malaysia, Thailand, Indonesia, Philippines and Singapore, is expected to grow to $3.8bn in freight value in 2025.
Cross border e-commerce is expected to contribute almost a third of total air cargo volume by 2027 from less than 10% 10 years ago, with demand coming from Asia, as well as the US and Europe.
Teleport said in the year to date it has shipped more than 81,000 parcels a day from China into southeast Asia, with more than 112 tonnes delivered per day, on average.
In May, Teleport said it was ramping up its next-day airfreight delivery services as cross-border e-commerce volumes increased into southeast Asia and that it aimed to deliver 2m parcels daily by 2025.
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