SHEIN Offers Free Access to European and American Warehouses for Sellers; OOCL Signs $1.57B Lease for Six New Container Ships with Seaspan
Latest Dynamics of Logistics & Supply Chains in China's eCom
Here’s our pick for last week’s news:
Deli Smart Warehouse Secures Tens of Millions in Funding
JD Logistics Launches New Shenzhen-Kuala Lumpur Route
SF Holding Reports Strong Q3 Results with Revenue of $10.18B
China Southern Air Logistics Launches Cross-Border Service to Dallas
COSCO Q3 Profit Rises 285.70% to $2.99B
OOCL Signs $1.57B Lease for Six New Container Ships with Seaspan
SHEIN Offers Free Access to European and American Warehouses for Fully-Managed Sellers
Loctek's Q3 Revenue in Overseas Warehouse Up 177% to $84.33M
Anjun Express Achieves Brazil's First Overseas Warehouse with Digital Supervision
Deli Smart Warehouse Secures Tens of Millions in Funding
Suzhou Deli Intelligent Logistics Technology Co., Ltd. (hereinafter referred to as "Deli Smart Warehouse") recently secured funds amounting to tens of millions of yuan from Jolmo Capital. The money will mainly be used for product development, tech upgrades, and global market expansion, enabling Deli's products and solutions to be deployed in more warehouses and countries worldwide.
Founded in 2020 in Suzhou, Deli Smart Warehouse is a pioneer in intelligent warehouse and smart logistics. With years of experience, they have developed expertise in material storage, handling, and line-side flexible warehousing logistics. This year, Deli Smart Warehouse established its international headquarters in Singapore to explore overseas markets, with several projects already up and running abroad.
JD Logistics Launches New Shenzhen-Kuala Lumpur Route
JD Logistics has announced a new international route from Shenzhen to Kuala Lumpur, Malaysia. This route will operate 2 to 5 flights a week, mainly transporting goods for cross-border e-sellers and Chinese brands looking to expand overseas.
Currently, JD Logistics boasts several self-owned overseas warehouses in Southeast Asia, along with well established logistics infrastructure that allow for delivery in as little as one day, significantly improving the logistics efficiency for Chinese brands and merchants there.
Recently, JD Express International has also expanded its international delivery services to seven countries in Southeast Asia, enabling local consumers to receive packages from China.
SF Holding Reports Strong Q3 Results with Revenue of $10.18B
SF Holding has released its third-quarter financial statement. In the first three quarters of 2024, it achieved a revenue of $29.07 billion, up 9.44% from the previous year. The net profit hit $1.07 billion, a 21.59% increase. In the third quarter alone, revenue amounted to $10.18 billion, up 12.07% year-on-year, while net profit soared to $394.92 million, up 34.59%.
For the third quarter of 2024, SF handled 3.229 billion packages, a 14.37% growth from last year, contributing to a 7.57% rise in its revenue from the express logistics. Due to rising international shipping costs and steady cargo volumes, the demand for international air freight has increased, leading to strong year-on-year growth in SF's international freight and agency services. Plus, the company is continuously expanding its supply chain and international market reach, which led to a 27.22% rise in revenue from these areas.
China Southern Air Logistics Launches Cross-Border Service to Dallas
China Southern Air Logistics has officially launched its cross-border service to Dallas (DFW), marking a big step forward for their services across the U.S. As the fourth entry point for the US route, their services in DFW will primarily target the country's southern region, reducing delivery distances and improving the timeliness of services. This will help clients expand their reach in the US market with high-quality, efficient transportation options, giving a competitive edge to "Made in China" products and promoting smoother trade between domestic and international markets.
COSCO Q3 Profit Rises 285.70% to $2.99B
On October 30, COSCO SHIPPING released its third-quarter financial statement. In the first three quarters of this year, the company generated $24.56 billion in revenue, up 29.80% year-on-year. The net profit attributable to shareholders was $5.36 billion, growing by 72.73%. In the third quarter alone, revenue was $10.33 billion, a 72.00% increase, while net profit surged to $2.99 billion, up by 285.70%.
COSCO pointed out that in the first three quarters of 2024, cargo volumes in major markets grew moderately, but supply capacity was affected by ongoing tensions in the Red Sea. However, during the third quarter, as the main trade routes in Europe and the U.S. entered peak season, the company's container shipping business saw increases in both volume and prices.
Over the first three quarters, COSCO's core business experienced significant growth. The container segment processed 19.0397 million TEUs, a 9.07% increase from last year, generating $23.73 billion in revenue, up 30.57%. The terminal operations achieved a throughput of 107.2673 million TEUs, a 7.08% increase, bringing in $1.12 billion in revenue, up 6.49%. Additionally, revenue from the container shipping, excluding sea freight, hit $4.32 billion, up 19.66% year-on-year.
OOCL Signs $1.57B Lease for Six New Container Ships with Seaspan
Orient Overseas (International) Limited announced that its subsidiary, Orient Overseas Container Line Limited (OOCL), has signed a deal with Seaspan, the world's largest independent container shipping company, to lease six new 13,580 TEU container ships for about ¥11.2 billion (around $1.573 billion), with a lease term of 15 years.
In the third quarter of 2024, Orient Overseas reported revenues of $3.056 billion, a 73.7% increase from last year, accounting for 41.9% of its total earnings for the first three quarters, which stands at $7.3 billion. With this deal, OOCL intends to deploy these new ships in emerging markets to further bolster its market presence. The ongoing Belt and Road Initiative is driving rapid growth in logistics demand in emerging markets across Asia, Africa, and Latin America, making these regions a focal point for global shipping companies.
SHEIN Offers Free Access to European and American Warehouses for Fully-Managed Sellers
SHEIN will offer free access to its European and American warehouses for merchants under the fully-managed model. This means sellers can send their goods directly to SHEIN's official warehouses for storage without any fees. SHEIN will help manage overseas stock and order delivery, making it easier for sellers to fulfill local orders.
In the past, when overseas customers ordered items, domestic sellers had to first store their products in SHEIN's domestic warehouses before shipping them to international markets. This process, which involved long-distance transportation and customs clearance, typically took a long time.
Now, sellers can opt for the fully-managed model with local inventory, allowing them to stock products directly in SHEIN's warehouses in Europe and the U.S. Once a customer places an order, the items will be shipped directly from SHEIN's overseas warehouses, thus ensuring a quicker delivery.
Loctek's Q3 Revenue in Overseas Warehouse Up 177% to $84.33M
Loctek announced its third-quarter financial statement for 2024, reporting a revenue of $217.56 million, a 53.67% year-on-year increase. The net profit for shareholders reached $14.76 million, up by 43.01%. For the first three quarters, the company's revenue soard by 48.03% to $558.66 million, surpassing last year's total, with a net profit of $37.24 million.
In cross-border e-commerce, Loctek earned $208 million in the first three quarters, a 15.9% increase. The overseas warehouse segment accumulated revenue of $202.24 million (+147%), with $84.33 million generated in Q3 alone (+177%), and a total of 926 clients served (148 new clients added).
In Q3 2024, Loctek opened new warehouses in New Jersey and Houston, USA, and in Wernau, Germany. By the end of September 2024, the company operates 19 warehouses worldwide, covering 621,000 square meters, about 160,000 square meters more since June. Loctek's overseas warehouses are also one of the official certified partners for Temu.
Anjun Express Achieves Brazil's First Overseas Warehouse with Digital Supervision
On November 1st, Wang Shouwen, the Vice Minister of Commerce and Chief Representative for International Trade, visited the Anjun Brazil International Express Customs Supervision Operation Center in São Paulo, Brazil. The assessment team, led by Brazil's Federal Revenue Service and various customs authorities, completed an evaluation of Anjun's customs facility in imaging and digital supervision systems, which passed all the tests, marking Anjun Express's warehouse the first international one in Brazil with digital remote supervision for customs clearance.