Alibaba Debuts Accio for B2B Sourcing; Chinese Firms Account for 20% of U.S. Warehouse Leases
Latest Dynamics of Logistics & Supply Chains in China's eCom
Here’s our pick for last week’s news:
Eastern Air Logistics Sees Strong 2024 Growth
Transten Global Eyes NASDAQ Listing
Alibaba Debuts Accio for B2B Sourcing
Cainiao Partners with COMAC Shanghai to Improve Global Logistics for Aircraft Parts
HKIA Dongguan Logistics Park Expands Global Reach with Launch of Cargo Route to Spain
S.F. Holding Clears Hong Kong IPO Hearing
Anjun Express to Launch First Bonded Overseas Warehouse in Brazil
Prologis: Chinese Firms Account for 20% of U.S. Warehouse Leases
Haoxin Holdings Updates Prospectus for Nasdaq IPO
Eastern Air Logistics Sees Strong 2024 Growth
Eastern Air Logistics (EAL) has posted strong earnings growth for 2024, with total revenue for the first three quarters reaching $2.44 billion, up 24.19% from last year. The company's net profit also surged by 24.14%, totaling $285.49 million. In Q3 alone, EAL reported revenue of $882.31 million, a 31.55% increase, while net profit doubled to $109.11 million.
Much of this growth is due to the surging demand for cross-border e-commerce logistics, which has seen a substantial boost since early 2024. Cross-border e-commerce has steadily expanded as a proportion of EAL's overall revenue, growing from 2.74% in 2018 to 22.79% in 2023. In 2023, the company's cross-border e-commerce logistics generated $648.89 million, up 71.71% from the previous year.
Transten Global Eyes NASDAQ Listing
Transten Global Group Limited, a leading cross-border logistics provider based in Shenzhen, has filed for an IPO with the SEC to list on NASDAQ. The proceeds will fuel the company's expansion, technological innovation, and marketing efforts, enhancing its competitive edge in the global market. Since its founding in 2018, Transten has grown its network to 32 countries, offering end-to-end logistics services, including pickup, warehousing, global shipping, customs, and last-mile delivery.
Financially, Transten's revenue surged from $7.9 million in 2022 to $37.02 million in 2023, with net profits rising from $0.17 million to $1.6 million. However, the company posted a loss in early 2024 due to significant increases in operating expenses, including management, sales, R&D, and foreign exchange fluctuations.
Alibaba Debuts Accio for B2B Sourcing
Alibaba has launched Accio, the first-ever AI-driven B2B search engine designed to streamline sourcing by acting as a personalized purchasing assistant for businesses globally. Accio, which went live on November 12, helps users discover suppliers and products based on key factors such as price, range, retail sales, and reviews, tapping into data from more than 30 million suppliers—vastly outpacing Alibaba.com's 250,000 vendors.
Initial trials of Accio's integration with Alibaba.com's "Search Factories" feature have shown a significant boost in conversion rates, increasing by up to 30%. The platform is overseen by Alibaba.com President Zhang Kuo and is part of the broader strategy of Alibaba International Digital Commerce Group (AIDC), led by CEO Jiang Fan, with a team of over 400 professionals driving both B2B and B2C innovation.
Cainiao Partners with COMAC Shanghai to Improve Global Logistics for Aircraft Parts
Cainiao has entered into a strategic partnership with COMAC Shanghai Aircraft Customer Service Co., Ltd. to enhance the storage and logistics of civil aircraft parts. Signed in Hong Kong, the agreement aims to leverage Cainiao's extensive global supply chain and warehousing capabilities to address the complex logistics requirements of high-end products like aircraft components, supporting the international expansion of China's C919 and ARJ21 aircraft.
Under the terms of the agreement, Cainiao will provide specialized warehousing and logistics services for Hong Kong and Southeast Asia, utilizing its Hong Kong-based resources for the storage of critical aircraft parts, including engines and landing gear. This collaboration builds on their existing relationship, with a focus on improving delivery speeds and warehouse efficiency. Additionally, Cainiao will apply its expertise in international logistics to assist COMAC with aviation parts logistics, customs processing, AOG services, and the development of a comprehensive logistics network.
HKIA Dongguan Logistics Park Expands Global Reach with Launch of Cargo Route to Spain
On November 12, a shipment of cross-border e-commerce goods successfully cleared customs at the HKIA Dongguan Logistics Park and was dispatched to Spain, marking the official launch of a dedicated cargo-only air route to Spain. This route is dedicated to cross-border e-commerce, with a shipment of over 50,000 packages weighing around 100 tons.
"We are set to begin further exports to Spain on November 14. Goods began arriving at the logistics park on November 9, and we've already submitted operational plans and applied for necessary support with Shatian Customs," said Wen Yuanyun, Chief Customs Coordinator at Dongguan Port Group.
Huangpu Customs reported that the logistics park now operates six international all-cargo routes, serving destinations in the Americas, Europe, and Southeast Asia, with cumulative exports exceeding $1.24 billion.
S.F. Holding Clears Hong Kong IPO Hearing
S.F. Holding has successfully cleared its Hong Kong IPO hearing on November 10, aiming to raise between $1 billion and $1.5 billion. If successful, the offering will be the year's second-largest listing, following Midea's IPO in September. Upon listing, S.F. Holding will become the first logistics company to achieve dual listings in both China A-shares and Hong Kong H-shares. According to its IPO filing, S.F. Holding ranked as Asia's largest logistics provider by 2023 revenue and the fourth-largest globally.
By mid-2024, the company's network spanned 202 countries, with 99 aircraft and over 186,000 vehicles, making it Asia's largest logistics fleet in both air and land transport. Renowned for its technology-driven operations, S.F. Holding held 4,199 patents as of June 2024, constantly innovating to enhance its services. The company is also Asia's largest logistics firm by customer volume, serving 2.2 million active monthly clients and a total of 699 million individual customers.
Anjun Express to Launch First Bonded Overseas Warehouse in Brazil
The 7th China International Import Expo (CIIE) commenced at the Shanghai Exhibition Center on November 5, with Anjun Express joining forces with several Brazilian companies specializing in transportation, ports, terminals, and bonded warehousing to highlight Brazil's leading logistics capabilities.
On November 6, Anjun Express's General Manager of Strategic Development, Mr. Yu Keqiang, signed a significant partnership with Rio de Janeiro's RIO BRASIL TERMINAL. This collaboration aims to establish Brazil's first bonded overseas warehouse at Rio Port, providing efficient sea freight logistics solutions for cross-border e-commerce.
Prologis: Chinese Firms Account for 20% of U.S. Warehouse Leases
Prologis, a global leader in logistics investment and operations, estimates that by the third quarter of 2024, Chinese logistics and e-commerce companies accounted for 20% of new warehouse leases in the U.S., marking a sharp rise in demand. Chris Caton, Director of Global Strategy and Analytics at Prologis, noted that while the company has long been leasing space to Chinese firms, this year has seen an accelerated pace of demand.
Reports from JLL also underscore this trend, revealing that Chinese logistics firms rented approximately 5.6 million square feet of warehouse space in New Jersey by Q3 2024—almost three times the area they leased in the region during the entirety of 2023.
Haoxin Holdings Updates Prospectus for Nasdaq IPO
Haoxin Holdings, a provider of cold chain full truckload services and urban deliveries, has updated its prospectus with the U.S. Securities and Exchange Commission (SEC) for a planned IPO on Nasdaq. The company aims to raise between $8 million and $12 million, with an offering price range of $4 to $6 per share.
In its recent prospectus, Haoxin reported revenues of $28.95 million and $26.66 million for 2022 and 2023, respectively, with net profits of $4.29 million and $3.97 million. For the first half of 2024, the company's revenue stood at $9.36 million (unaudited), a decline from $10.28 million during the same period last year. Net profits for H1 2024 were $1.22 million, down from $1.63 million in 2023.