Teleport's China Commercial Country Head Janson Peng speaks at a Teleport media briefing in Shanghai. Photo: Teleport
Teleport aims to further strengthen its e-commerce air cargo business between China and Southeast Asia with its next-day delivery service.
The Malaysia-based logistics company said it is working to reduce delivery times for e-commerce cargo between China and Southeast Asia through its air network.
At Teleport's first media briefing in China on June 20, Janson Peng, Teleport's China commercial country head, said: “Currently, the standard service level for e-commerce marketplaces to transport cross-border parcels from China to consumers in Southeast Asia is around five days.
“It takes retailers one to one-and-a-half days to pack and deliver a package to their warehouse, and about four days to get from their warehouse in China to their destination warehouse in Southeast Asia. We have the capacity to reduce the four-day delivery time between China and Southeast Asia to next day at an affordable price.”
Teleport was established in 2018 by combining the belly capacity of all AirAsia airlines into a single network. Teleport also adds capacity from third-party airlines.
The company is currently 10 A321 passenger freighter aircraft (P2F). Teleport currently operates three A321Fs, with all 10 due to be delivered by the end of the year.
Teleport's air logistics network has been operating in China since 2019 and currently connects cargo from 19 cities in China and 85 cities in Southeast Asia.
Janson added: “We currently operate a monthly frequency of 2,214 flights, making us the de facto leader in terms of frequency from China to cities in Southeast Asia. We also have the most Chinese airports with direct connections to cities in Southeast Asia, connecting 19 cities in China with over 85 cities across Southeast Asia. This includes secondary and tertiary cities across the region, providing Chinese companies with additional coverage that they couldn't necessarily reach via traditional flight routes.”
“Moreover, our network allows our customers to travel within the region to reach other markets, acting as a perfect transhipment hub connecting Chinese companies with other key markets such as Oceania, the Middle East, Europe and the US.”
To better serve the Chinese market, Teleport plans to continue enhancing its ground first mile capabilities and expand to more cities, including in the Guangdong-Hong Kong-Macao Greater Bay Area, with priority custom lanes.
The Teleport noted that the main e-commerce routes between China and the top five Southeast Asian countries (Malaysia, Thailand, Indonesia, the Philippines and Singapore) are expected to grow to $3.8 billion in cargo traffic by 2025.
Cross-border e-commerce, driven by demand not only from the United States and Europe but also from Asia, is expected to account for almost a third of total air cargo volume by 2027, up from less than 10% a decade ago.
Teleport said it has shipped more than 81,000 packages per day from China to Southeast Asia so far this year, delivering an average of more than 112 tonnes per day.
In May, Teleport announced it would strengthen its next-day air cargo delivery services in response to the rise in cross-border e-commerce to Southeast Asia. By 2025, we will deliver 2 million packages every day.
Teleport raises the bar in package delivery
Teleport takes delivery of first A321P2F, expects to have 10 aircraft in its fleet by the end of 2024
