Cargo Capacity Boosted to Meet Growing Demand

Etihad Cargo, the logistics and cargo division of Etihad Airways, has enhanced its operations to respond to rising customer demand across Greater China. The carrier is increasing its total number of flights between China and other markets from 11 in 2024 to a projected 18 by 2025, reinforcing trade connections between major global regions.

To support this growth, Etihad Cargo will utilize a wet-leased 747 freighter, bolstering freight capacity on high-demand lanes and offering customers enhanced flexibility for shipments to and from key global destinations.

In response to the surging market demand, the airline has introduced three more weekly freighter services to Shenzhen and added two additional flights per week to London. These new routes will significantly improve connectivity between China, Europe, and the Middle East, with expanded capacity for the transport of e-commerce, pharmaceuticals, perishables, and other time-sensitive goods.

This strategic capacity increase aligns with Etihad Cargo’s broader objective to expand its global footprint and deliver dependable, customer-focused logistics solutions. The airline remains dedicated to providing agile, efficient freight services while advancing Abu Dhabi’s role as a premier global logistics center.

Commenting on the expansion, Stanislas Brun, Chief Cargo Officer at Etihad Cargo, said: “Etihad Cargo is continuously investing in network growth and capacity enhancements to support the dynamic needs of global commerce. The added services to Shenzhen and London Stansted reflect our dedication to meeting customer expectations through increased access and stronger trade route connectivity.”

By deepening its footprint in China and strengthening links with Europe, Etihad Cargo is unlocking greater freight capacity to facilitate the smooth flow of goods across international markets.

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Industry Urges Supply Chain Resilience After Heathrow Closure

China Zero Covid: Supply Chain Impact

What supply chain impact will there be from China’s ending of Covid restrictions? Jochen Freese, Chief Commercial Officer, Forto, comments:

“While it is undeniable that the supply chain will be affected if Covid rates continue to grow in China, it is important to remember that the current period – between Christmas and the Chinese New Year – is a quiet time for Asia-Europe trade. Covid is hitting China at a time of low demand which means that even if companies lack workers, they can still fulfill orders.

“I also believe that it might not turn out as bad as everyone is predicting. Despite the high incidence rate in China and the seasonal factors mentioned, Forto has moved more volumes from Asia to Europe in December 2022 and January 2023 than we did for the same period a year before. We moved 17% more volume from China and 50% more from Vietnam.

“However, there is no doubt that now is the time for companies to diversify their supply chain. They can do so by adding production sites within or outside of China, as Apple has done, or try out different trade lanes or transport modes so as to avoid the negative effect of possible port closures. We have had customers, for example, adding rail to their usual sea freight and realizing the advantages of fast, reliable and reasonably priced transport.”

Forto is the first European digital freight forwarder specializing on the Asia-Europe trade lane. Forto has 5 offices in Greater China (Hong Kong, Ningbo, Shanghai, Shenzhen, Tianjin), 2 offices in Vietnam (Hanoi, Ho Chi Minh) and one office in Singapore. Forto employs more than 150 people in Asia and around 800 people globally.

Overcoming Peak Challenges in Skechers’ Chinese DC

Logistics Business has been granted exclusive access to Skechers’ Chinese DC fulfilment centre, 100km outside of Shanghai, where Libiao Robotics has deployed a comprehensive automated solution to enable the FMCG retailer overcome a considerable spike in orders around the annual ‘Singles Day’ online shopping frenzy.

Eric Chow, Senior MHE Manager at Skechers’ Shu-Jo eCommerce fulfilment centre talks with Logistics Business editor Peter MacLeod about the challenges and solutions of scaling up, whilst Ronan Shen, overseas sales director of Libiao Robotics takes us for an entertaining and informative walk through the DC, highlighting some of the automation his company has brought to the facility.

Skechers’ Chinese DC

Furthermore, Shen describes his company’s ambitions to service global markets, in particular Europe.

CLICK HERE to watch this exclusive Logistics Business webinar.

In Spring 2024 LiBiao’s range of autonomous sortation robots will be on display at two important European trade fairs. Logistics professionals can discover the many ways that LiBiao technology can benefit their business by visiting the company’s stand at LogiMAT (Stuttgart, Germany, March 19-21st).

LiBiao is a global pioneer of intelligent sorting robots, and one of the world’s leading suppliers of flexible intelligent sorting solutions, creating the world’s first portable, modular and automated unit sorting system. The company integrates logistics automation, research and development, production and sales of intelligent equipment.

Since its establishment, LiBiao has always specialized in the development and innovation of logistics automation technology, emphasizing original intelligent technology, independent system bottom layer and application development. All of its products are independently researched and developed, and the company has accumulated over 100 exclusive invention patents. With the sorting robot series as the core, and the automatic control system, automatic scanning and weighing system, intelligent charging system as supporting components, LiBiao has gradually built up a rich product ecosystem for intelligent logistics applications.

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Case Study: It’s a Shoe-in at Skechers EDC

 

 

HAI and Anta launch latest warehouse automation project

HAI ROBOTICS is working with sportswear giant Anta on a third automated warehouse following the success of two earlier projects. The subscription of the latest project from Anta, together with dozens of projects ongoing in the footwear and apparel market, marks HAI ROBOTICS an established supplier in the sector.

HAI ROBOTICS, a global pioneer in Autonomous Case-handling Robotic (ACR) system for warehouse logistics, and Anta, the world’s top three sportswear brand, will launch in south China a new project, as the autonomous robot maker’s cutting-edge autonomous totes-to-person solution will help Anta accommodate surging orders.

The new project, to be launched in April in Anta’s brand-new warehouse in Foshan, Guangdong Province, will be the third joint-project between the two companies, marking HAI ROBOTICS’ continued success in warehouse automation, in footwear and apparel sector in particular.

Using HAI ROBOTICS’ ACR system, the 9m-high warehouse would reach a much higher storage density to offer up to 30,240 locations, with daily throughput expected to reach 128,000 units.

As an official sponsor of the Beijing Winter Olympics and Paralympics, Anta has seen surging deals, putting warehouse logistics under mounting pressure.

“Anta sees HAI ROBOTICS as an important long-term partner, as we have shared ambition in smart warehousing,” Chen Jiancong, General Manager of logistics of Anta Group, said at the group’s logistics partnership conference, held in its headquarters in Jinjiang, southeast China’s Fujian Province.

Richie Chen, founder and CEO of HAI ROBOTICS, said his company names Anta as one of the top-10 most important global clients, who are entitled to more tailored service. “Together we will keep innovating to address more challenging scenarios for the footwear and apparel warehousing sector and bring more added value to our customers,” Chen said.

HAI ROBOTICS, named a global AI unicorn by Hurun Research Institute in the 2021 ranking, has dozens of ongoing projects for top footwear and apparel brands.

The company was awarded the best strategic supplier by Anta, at Tuesday’s conference, to recognise the efficiency the ACR system has helped to achieve in the supply chain.

Continued success

HAI ROBOTICS’ ACR system was first deployed in Anta’s warehouse in southwestern China’s Chengdu, Sichuan Province, in April 2021.

With 25 customised HAIPICK robots doing case picking and retrieving from shelves to continuously feed goods-to-person picking stations, storage density of the 5.7m-high warehouse increased significantly to offer up to 27,600 locations. It can handle up to 80,000 units in outbound orders per day.

The warehouse, which was previously stretched tight to handle its tens of thousands of SKUs at low picking accuracy, is now feeding the needs from 1,200 brick-and-mortal stores with a weekly outbound volume of 60,000 pieces.

The tremendous efficiency improvement prompted Anta into a second warehouse automation project with HAI ROBOTICS only three months later.

A larger robot fleet was stationed in its 3,500 sqm warehouse in Jinjiang. With the redesign of 11-layer shelves inside the 5.7m-high warehouse, the project provides around 20,000 storage locations. The warehouse reached a daily outbound capacity of 200,000 pieces with the use of HAIPORT-powered Workstation, an automatic loading and unloading machine.

 

GEODIS commits to Geek+ AMR fleet

GEODIS has announced the deployment of Autonomous Mobile Robots (AMRs) from Geek+, a global technology company specialised in smart logistics through advanced robotics and artificial intelligence (AI), at its Yuen Long Warehouse Distribution Centre (YLDC) in Hong Kong, SAR China.

The YLDC will be provided with an exclusive AMR operating area with QR coding to guide automated operations. The smart facility underlines GEODIS’ digital-first outlook to future operations.

Onno Boots, Regional President & CEO, Asia Pacific, said: “Our investments in this AI-driven automation system brings substantial value to GEODIS’ eCommerce and retail customers by addressing some of the key challenges they face today. These solutions not only bring long-term cost-savings, operational efficiencies, and safety, but also enable us to maintain high-quality control standards while providing customers greater speed and flexibility of movement of goods.”

GEODIS’ initial project AMR deployment features customised storage racks and shelves that do not require aisles in between while parked. This high-density storage buffer allows GEODIS to maximise its storage capacity for improved customer fulfilment processes. Furthermore, the Geek+ robots will be used for locating, tracking, and moving inventory through “Goods-to-Person Picking” solutions. This method allows orders to be delivered directly to pick and pack stations, eliminating any movement time needed by operators to search for items.

In addition to improved real estate utilisation, AMR adoption minimises manual labour and reduces the risk of human error—improving picking accuracy and reducing inventory count errors. The use of AMR will also mitigate some of the challenges brought on by COVID-19, such as social distancing protocols in warehouses.

“Today’s announcement demonstrates GEODIS’ continued commitment to innovation and its momentum in addressing the increasingly complex production and challenges in the Hong Kong Contract Logistics (HKCL) landscape in the last two years,” Chris Cahill, Managing Director, North Asia Sub-Region said. “In the long run, digital solutions and technologies like robotics and AI give us more data and insights so we can continue to finesse our operations to fulfil the needs of our customers.”

“The announcement reveals Geek+‘s determination to support companies worldwide with technologies that can streamline operations, transforming the global supply chain to address increasingly complex logistics challenges,” added Lit Fung, VP and Managing Director of Geek+ APAC, UK and Americas. “We will continue help GEODIS better manage changes in demand, quickly scale in line with business growth, and provide customers with better products and service capabilities.”

The Geek+ solution advances GEODIS‘ goal of boosting its smart logistics portfolio and provides a competitive edge to meet the rising demands for agility and accuracy amidst soaring demand in the eCommerce, retail and FMCG segments. GEODIS has around 250 autonomous mobile robots worldwide.

AliExpress bolsters logistics ecosystem

AliExpress, part of Alibaba Group and one of the world’s largest online retail marketplaces, has introduced innovative logistics solutions in partnership with Cainiao, Alibaba’s logistics arm. Ahead of the world renowned 11.11 Global Shopping Festival, this enables the Company to offer X-day delivery guarantee and an enhanced service to millions of customers.

The upgrades, consisting of China domestic selection warehouses, automated sorting centres, overseas warehouses, increased weekly chartered flights, as well as last-mile self-pickup network, help create one of the world’s most robust cross-border e-commerce ecosystems. These new additions significantly speed up the dispatch time needed for shipments from China to overseas customers.

Riding on this momentum and the triple-digit growth in AliExpress’s key markets, Brazil, Spain and France in 2020, the company plans to further increase its investment in innovative technology to support its global and local logistics.

“Shoppers worldwide have come to expect efficient delivery,” said Wang Mingqiang, general manager of AliExpress. “Through our ongoing innovations and strategic partnership with Cainiao, we have enhanced our cross-border e-commerce ecosystem. We can now help our sellers deliver popular products within an incredibly efficient delivery time to Europe and Latin America. As we implement this enhanced supply chain network ahead of the 11.11 Global Shopping Festival, we are thrilled to be delivering goods faster and more reliably with no additional cost for our valued customers.”

In the past year, the number of packages received and delivered by AliExpress’ ecosystem logistics partners has increased by 100%. In response to the rising needs through partnership with Cainiao, five selection warehouses have been established in China for sellers to pre-stock their AliExpress products, thus significantly reducing the dispatch time, along with nine domestic automated sorting centres and 80 chartered flights in average every week, AliExpress now offers 10 working days delivery for selected cross border orders made in Spain and France, 12 working days for Brazil and five working days for South Korea.

There are plans to roll-out the initiatives in more European markets. Between 11th and 30th November, AliExpress will have more than 300 chartered flights in total to ensure customers receive their package on time.

Since 2020, AliExpress and Cainiao have also actively developed overseas warehouses to enhance the capacity and efficiency of cross-border logistics networks. By utilising these warehouses, local delivery in Spain and France can be achieved in three days and seven days for the rest of Europe. Over the next year overseas warehouses will largely be upgraded with a strong emphasis on local logistics.

On last-mile delivery, a network of over 20,000 self-pickup service points has been launched in Spain, France, Poland and Russia, combining AliExpress-branded lockers powered and operated by Cainiao, as well as collection points powered by local partners. These lockers offer a fluid shopping experience for consumers, who can freely and quickly pick up their AliExpress orders in automatic lockers. This is a practical solution that offers greater flexibility and security.

Additionally, AliExpress will introduce an ‘on-time guarantee’ in Spain and France ahead of the 11.11 Global Shopping Festival. This service will be applicable for any orders shipping from China domestic selection warehouses, as well as Cainiao overseas warehouses, and AliExpress will automatically reimburse US$1 coupon per order in case of late arrival of the packages.

AliExpress has continued to improve its delivery service with a logistics strategy that grows stronger every year. The latest upgrades came just in time for the 11.11 Global Shopping Festival to bring customers around the world a delivery guarantee with a much shorter timeline. AliExpress will be allocating more resources to support its business roadmap, a key element of the roadmap is recruiting more local merchants onto the platform.

Enhancing the network of overseas warehouses and self-pickup lockers for a better customer experience are one of the key business objectives for AliExpress in the coming years.

Suez crisis boosts China-Europe rail freight

With increasing volumes of cargo being experienced on its LCL and FCL rail freight services between China and Europe, the U-Freight Group says that the recent problems in the Suez Canal have made the transport of freight by rail from China into Europe look all the more attractive.

Simon Wong, chief executive officer of the U-Freight Group, comments: “Clearly supply chain planners are reappraising what was once a completely dominant Suez Canal route from China into Europe, with intermodal rail continuing a sharp upward trajectory in 2021, following on from a strong 2020.

“Although the first China-Europe container freight train was in 2011, it has taken a decade and considerable investment by China’s government to see the route become an established part of logistics networks.

“The COVID pandemic, and the capacity problems in the air and ocean sectors have pushed the route to much heavier usage, with the recent blockage of the Suez Canal leading to additional traffic.”

U-Freight started its regular service in 2014, consolidating cargo in Zhengzhou and using the daily service that operates from that railhead to and from Malaszewicze in Poland, Hamburg in Germany, and Liege in Belgium.

Last year, it added  a second consolidation centre at its logistics hub in Shanghai.

Wong concludes: “We now handle significant consol shipments from China to Germany, Italy, Sweden, Switzerland and The Netherlands in particular, as well as smaller volumes to other European countries, handled by our network of long-standing agents once the shipments arrive at the three rail freight hubs on the continent.

“We chose the service from Zhengzhou as it offers a daily frequency, although for FCL shipments our large Chinese presence enables us to arrange container pickup from across the country and select a service from the rail freight gateway that is nearest to our customers.

“While other transport modes still face significant capacity and schedule issues, our overland rail freight service is clearly demonstrating that it offers a competitive alternative to air freight in regards to price, and considerably faster transit times compared to the ocean freight alternative.”

Typical transit times from Zhengzhou to Malaszewicze are between 12 to 14 days, and 16-18 days to Hamburg.

GEFCO Partners with Polestar for Home Delivery of Cars in China

GEFCO, the European leader in automotive logistics is partnering with Polestar, the global premium electric performance car brand to deliver electric cars to individual customers in Shanghai and Beijing. Moveecar, a GEFCO brand focusing on in-life vehicle management, is leading this new business relationship.

“We are very pleased to have been chosen by Polestar in China,” commented Laurent Sik, General Manager of GEFCO China. “Polestar allows customers to personalize their EV ownership experience and we are excited to be part of it.” With Moveecar’s services, Polestar gives customers the freedom to choose where and when they want their vehicle to be delivered, without having to go to the store.”

Polestar is the independent Swedish premium electric performance car brand founded by Volvo Cars and Geely Holding. Established in 2017, Polestar enjoys specific technological and engineering synergies with Volvo Cars and benefits from significant economies of scale as a result.

“With GEFCO’s innovative logistics solution, we lead the new trend of car delivery service.” said Gao Hong, President of Polestar China.  “As the beginning of a Polestar ownership journey, Home Delivery builds up the emotional connection between the Polestar brand and the customers.”

“GEFCO has been a long-time logistics partner in finished vehicles logistics services to the group companies in Europe as well as in China. Delivering Polestar cars to customer’s homes will add to the experience of hassle-free ownership that we provide, and capable logistics partners, who have the competence and equipment, are needed to achieve that goal,” stated David Pansinger, Head of SCM at Polestar.

GEFCO has mobilized a range of trucks to provide home delivery of Polestar’s electric cars in the two cities. With full track-and-trace capabilities, customers are alerted in real time on when they can expect delivery. GEFCO is also working with Polestar to manage short-term finished vehicle compound management. This new contract builds on GEFCO’s relationship with Volvo since 2016 to transport finished vehicles from Europe to China.

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