TEMU Aims for 80% European Orders Fulfilled via Local Warehouses; SF Holding's 2024 Earnings: Revenue Set to Top ¥282 Billion
Latest Dynamics of Logistics & Supply Chains in China's eCom
Here’s our pick for last week’s news:
TEMU Aims for 80% European Orders Fulfilled via Local Warehouses
Cainiao Opens Third Warehouse in Poland
China Logistics Sees 11% Revenue Growth in 2024
JD Express Sees 30% Surge in Shipments from China to South Korea
2024 Survey: Faster Deliveries and Rising Demand for Free Shipping
SF Holding's 2024 Earnings: Revenue Set to Top ¥282 Billion
Apex Logistics Launches New Ezhou-Hanoi Cargo Route
China's Export Shipping Rates Fall Across Global Routes
TEMU Aims for 80% European Orders Fulfilled via Local Warehouses
TEMU has begun using local warehouses for deliveries in Europe, with plans to handle 80% of European orders this way in the near future. Officially rolled out in December 2024, the service cuts delivery times from weeks to days, with products from both Chinese and European sellers delivered directly to customers. Available initially in Germany, France, Spain, the Netherlands, and Italy, this service has recently expanded to Austria.
Cainiao Opens Third Warehouse in Poland
Cainiao's overseas warehouse in Poland saw a 120% year-on-year shipment increase in 2024, with a 150% surge in the fourth quarter. To meet rising demand, the company has opened its third Polish warehouse, located just two hours from major airports and ports. The new facility enables more cross-border merchants to offer 2-3 day delivery to customers across Europe.
China Logistics Sees 11% Revenue Growth in 2024
In 2024, China Logistics reported robust growth, with logistics revenue up 11% and international freight forwarding volume increasing by 17%. The company saw a 50% surge in international rail shipments and an 18% rise in online freight volume. Beyond China, China Logistics operates 53 subsidiaries and has expanded its warehouse network to 78 sites, covering 1.35 million square meters worldwide.
JD Express Sees 30% Surge in Shipments from China to South Korea
Since January, JD Express International has seen a 30% month-over-month increase in express shipments from Shanghai to South Korea. In September 2023, the company expanded its services to Japan and South Korea. Over the next 2-3 years, JD plans to expand its warehouse network and develop international air routes to offer 2-3 day delivery across the Asia-Pacific. The recent opening of JD Logistics' Tokyo No.1 warehouse marks its first self-operated facility in the region.
2024 Survey: Faster Deliveries and Rising Demand for Free Shipping
The 2024 IPC Cross-Border E-Commerce Shopper Survey, which conducted with 31,000 participants across 37 countries, shows that fewer shoppers are waiting long for deliveries. Only 10% of respondents reported waiting 15 or more days for delivery, down from 17% in 2023 and a significant drop from 29% in 2020. Despite the rise in cross-border shipments from China, the speed of delivery has improved.
Free delivery has gained popularity and is now more common than last year, with many shoppers valuing it more than ever. Consumers are also increasingly opting for cost-effective delivery methods like Click & Collect or in-store pickup. Additionally, nearly two-thirds of shoppers are shifting their spending toward more affordable products online.
SF Holding's 2024 Earnings: Revenue Set to Top ¥282 Billion
SF Holding reported ¥26.44 billion ($3.61 billion) in December 2024 revenue, up 12.34% year-on-year, with express logistics contributing ¥19.64 billion ($2.68 billion), driven by a 19.47% rise in parcel volume to 1.35 billion. Revenue per parcel fell 9.06% to ¥14.55 ($1.98). International and supply chain services grew 24.63% to ¥6.80 billion ($0.93 billion). In 2024, the comany's revenue is expected to exceed ¥282.59 billion ($38.55 billion), a 10% annual increase.
Apex Logistics Launches New Ezhou-Hanoi Cargo Route
Apex Logistics has launched a new cargo route connecting Ezhou and Hanoi, using a Boeing 737-800F to transport electronics, e-commerce goods, and more. This addition expands Apex's growing network, complementing existing dedicated freight services to Chicago, Hawaii, and Anchorage-Seattle. Ezhou Huahu Airport now operates over 120 international cargo flights weekly, with daily connections to Europe, the Americas, and Asia.
China's Export Shipping Rates Fall Across Global Routes
The Shanghai Shipping Exchange reported a 6.98% drop in its Export Container Freight Index (SCFI) on January 17, marking two consecutive weeks of declines across all routes. The U.S. West Coast saw the largest drop at 9.61%, followed by Latin America with over 7% decrease and Europe at 6.6%. The U.S. East Coast and Mediterranean routes also saw declines of over 4%. Shipping companies, including Maersk, have slashed prices for post-Chinese New Year shipments, with West Coast rates dropping by $1,000 per container. Further price cuts are expected next week, though rates may stabilize if post-holiday volumes meet expectations.