Cainiao Reduces Lazada’s Cross Border Logistics Cost by Over 50% in East Malaysia


Cainiao Network (Cainiao), the logistics arm of Alibaba Group, has announced the launch of direct air freight from China to East Malaysia to enhance Lazada’s cross-border logistics. Operated three times weekly, the direct flights to Kota Kinabalu, Sabah, and Kuching, Sarawak, will reduce logistics cost by over 50 per cent for Sabah and Sarawak customers, and shorten the average delivery time by 2 days, from 14 to 12 days or as fast as 7 days. The move was to enhance delivery efficiency and stability amid growing consumer demand.

Traditionally, shipping to East Malaysia such as Sabah and Sarawak entails multiple modes of transportations comprising international freight to Malaysia’s airport in Kuala Lumpur, domestic flight to Kota Kinabalu, Sabah, or Kuching, Sarawak, followed by last-mile courier delivery to consumers’ doorsteps. Currently, pandemic and movement control order (MCO) restrictions on international and domestic commercial and cargo flights have further lengthened delivery time and exacerbated delivery challenges.

To instil greater long-term shipping stability and deliver a superior customer experience, Cainiao and Lazada have been working together to establish a comprehensive cross-border logistics network in Malaysia. With a stable and seamless logistics value chain, customers in Malaysia can now gain access to a wider array of global products from countries such as China, South Korea and Japan.

“Industry data revealed that Malaysia’s eCommerce is set to more than double from US$6 billion to US$13 billion from 2020 to 2025[1], with 61 per cent of cross-border eCommerce purchases from China[2]. Against the backdrop of growing consumer demand and increased e-tailer competition, superior logistics services will continue to be the key differentiator for merchants to improve customer experience and establish their competitive edge,” said Shawn Louis, Executive General Manager for Cainiao and Chief LazGlobal Logistics Officer.

He added, “In our efforts to further streamline logistics value chain and deliver a more efficient and seamless shipping service to end consumers, we have launched a direct air freight route to East Malaysia, effectively removing domestic air freight and ground transfers. This logistics upgrade will benefit consumers in East Malaysia as they can now enjoy the same delivery timeliness and shipping cost as those in West Malaysia.”

This announcement comes after the commencement of operation of the Cainiao Aeropolis eWTP Hub, an e-fulfillment hub located at Kuala Lumpur International Airport (KLIA), in November 2020. The move aims to shape Malaysia into a major regional player for e-commerce distribution and a leading airfreight gateway in ASEAN. The first customer to leverage the hub’s facilities was Lazada.

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Ryan is the Digital Marketing and Content Creation Manager for Trade and Logistics Siam Ltd. He provides a creative flair to the team and his resourcefulness helps to bring an imaginative improvement to both literary archetypes and online content production. A writer by day and a rider by night, when he's not composing the latest logistics news update or creating compelling copy for our clients, Ryan spends his free time travelling Thailand by motorbike.