Couriers busy after November 11 online shopping surge
November 14, 2013 Category Express delivery, Logistics
November 11 – Single’s Day – is China’s major online shopping festival, launched by e-commerce firm Alibaba Group Holding five years ago, when millions of online shoppers hunt bargains, leading to a very busy period for courtiers who have to deliver the goods. More than 20,000 vendors on Alibaba’s sites-Tmall and Taobao – knock 50% off full-priced items on November 11. According to consultancy Bain & Co, it is a day when more people visit the most popular e-commerce sites than the entire population of Brazil. More transactions were recorded this year than during the U.S. Cyber Monday. The sheer volume of orders overwhelmed the nation’s courier companies and delayed deliveries, although express delivery companies chartered aircraft to serve high-volume areas, among other measures. More than 100 cargo jets were leased by major couriers, according to a statement from Alibaba. SF Express (Group) Co, the first privately-run courier in China to have its own air fleet, deployed 31 cargo planes at the delivery peak. YTO Express (Logistics) Co used two Boeing 737 cargo planes on the Beijing-Shenzhen route to move packages from North to South and Southwest China within 24 hours. EMS, the express delivery unit of the State Post Bureau, leased 26 freighters under a deal with Air China Cargo and PEMCO International. Two foreign companies-FedEx Corp and United Parcel Service of America – signed agreements with the railway authorities to use trains for deliveries. The China Express Association said the country’s 13 major couriers would add about 4,000 temporary vehicles to their regular fleet to deal with the volume, along with 30% more air freight. Shentong, which is based in Shanghai and moves shipments for Alibaba’s online shops, said it had hired more than 45,000 temporary workers to help its regular staff of 150,000.
Logistics companies also formed partnerships with e-commerce platforms by using “big data” analysis to streamline operations and resources. The drive for a data-driven logistics system was crucial this year, as the number of Tmall brands joining the event doubled compared with last year, said Tan Biao, Director of Alibaba Group’s logistics business unit. Tmall shared data with its logistics partners through an online “dashboard”, which identifies potential problems in the supply chain and allows companies to adjust their operations accordingly. The company also worked with the China Meteorological Administration to provide up-to-date weather information to shippers.
Chinese courier firms have received more than 60 million parcels, double the number of last year, for delivery following the Single’s Day online shopping frenzy, the State Post Bureau said. Online shopping platforms received a total of 180 million orders on November 11, a surge of 85% from last year. The nine major Chinese couriers received a record-setting 10 million parcels on Single’s Day.
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