1.  China-Canada Direct Flight Capacity: Increasing Frequency of All-Cargo Flights

Currently, there is a large demand for cross-border e-commerce parcels to be exported via air transportation from China every day. These parcels include shipments from platforms like SHEIN, TEMU, TIKTOK, AliExpress, independent websites, and export consolidation, with about 80% of parcel volume directed towards Europe and North America.

In 2023, the largest cargo owner in the global air cargo market shifted from Apple to TEMU and SHEIN. According to estimates, the annual export volume of these two platforms via air cargo has reached millions of tons. Driven by the high-frequency demand for e-commerce and high-value cargo on all-cargo flights, the operation of all-cargo flights has received increasing attention from cross-border logistics companies.

On one hand, there is high demand in the air cargo market, while on the other hand, there is a continuous shortage of air cargo capacity. JiaYou International, deeply rooted in the Canadian market, signed a strategic cooperation agreement with Southern Air Logistics on February 23, 2023, to jointly provide customized door-to-door logistics transportation services from China to all parts of Canada.

Since the official operation of all-cargo flights in March 2023, JiaYou International has continuously deepened its efforts and investments in the China-Canada air freight transportation sector.

JiaYou International founder Fu Jian mentioned that when they initially signed the strategic cooperation agreement with Southern Air Logistics for all-cargo flights, their goal was to ensure two flights per week and strive for three flights per week. After about half a year, by September 2023, they further raised their goals, hoping to ensure three flights and strive for four flights per week, further increasing the frequency of all-cargo flights.

The operation of all-cargo flights has greatly boosted the development of JiaYou International. While many people may think that JiaYou International still focuses on the small parcel market in Canada, this is not entirely true. Based on the diversified needs of the Chinese e-commerce industry for Canadian logistics, with all-cargo flight operations as the backbone, JiaYou International has optimized various nodes of cross-border logistics from China to Canada to meet the rapid fulfillment requirements of Chinese e-commerce throughout the entire process. Currently, JiaYou International has planned six domestic business sectors and five overseas business sectors.

Domestic six business sectors:

China-Canada dedicated line for small parcels

China-Canada door-to-door air and sea transportation for medium and large items

China-Canada all-cargo flight capacity operation

China-Canada air and sea transportation consolidation

Canadian Chinese community group buying

Canada-China door-to-door import

Overseas five business sectors:

Port rapid transfer (first mile), covering dismantling, customs clearance, pickup, release, and other processes after the plane lands

Inter-city trunk transfer (middle mile) in Canada, transporting from the two major port hubs of Vancouver and Toronto to secondary processing centers

Last mile delivery in Canada

After-sales service for e-commerce, including reverse logistics, warehouse quality inspection, and secondary shelving of good products

Integrated warehousing and distribution (fulfillment2C), warehousing + one-piece shipment from overseas warehouses

In logistics supply chain nodes, JiaYou International has conducted in-depth and refined layouts in more than a dozen nodes, striving to make each node autonomous and controllable. These businesses ultimately converge into JiaYou International's latest positioning - a self-operated end-to-end supply chain solution for China-Canada bilateral logistics.

2.  Achieving 90% of DHL Service with 50% of DHL Prices

After all-cargo flights land, the dismantling of cargo at overseas cargo stations is crucial. However, there is a serious timeliness issue in this process. While 24 hours of cargo dismantling at overseas stations is generally sufficient to meet market demand, Chinese consumers pursue extremely fast logistics, hoping for cargo dismantling and pickup within 4-6 hours of the all-cargo flight landing.

Therefore, with the increasing frequency of all-cargo flights, JiaYou International began to pay attention to the overseas cargo station link. In 2024, the biggest vision is to continue deepening the layout of self-operated overseas cargo stations in Canada with the help of the increased frequency of all-cargo flights.

JiaYou International aims to target DHL and create a complete chain including pre-sorting, trunk vehicles, and end pickup. They aim to control the entire process from all-cargo flight landing to sorting and processing centers to achieve hourly time nodes, meeting the timeliness standards of overseas Chinese for logistics fulfillment.

JiaYou International founder Fu Jian believes that as a global logistics giant, DHL's logistics timeliness is widely recognized in the industry, and the ultimate timeliness ceiling for specialized logistics companies is DHL. However, since Canada is a niche market, DHL does not have direct all-cargo flight routes from China to Canada but relies on some transit hubs to reach the Canadian market.

Therefore, their ideal is to achieve nearly 90% of DHL service with 50% of DHL prices, through all-cargo flight operations, diversified end delivery, etc., reducing logistics costs to 50% of DHL's costs. That is, achieving 90% of DHL service at 50% of DHL prices, creating a high-cost-effective, self-controlled end-to-end cross-border logistics supply chain service between China and Canada, which is also the development goal of JiaYou International in the coming years.

3.  Providing After-sales Service Overseas in Addition to Logistics

In addition to the demand from local consumers, the demand for Chinese goods by overseas Chinese has increased dramatically in recent years, leading to the popularity of Chinese group buying in the market. Vancouver, Canada, also ranks among the top three livable cities in the world.

The large number of Chinese people has generated a large number of personalized purchasing demands. Different from traditional specialized small parcels, these goods are more inclined to be medium and large customized items. These are defined as long, overthrown, and overweight in the traditional specialized field, representing very personalized logistics needs.

In response to the shopping needs of overseas Chinese, JiaYou International has launched a shipping and delivery service combination, including ocean shipping, customs clearance, and delivery of medium and large items. For example, in Canada, Neighbour Express, similar to China's Deppon, has been established for the delivery of medium and large items, covering the two cities with the highest concentration of Chinese immigrants, Toronto and Vancouver.

However, there are significant differences between the medium and large item delivery network and the e-commerce delivery network in terms of sorting, warehouse operations, and delivery to the doorstep.

Based on the medium and large item delivery network, JiaYou International also noticed the issue of after-sales service overseas. For example, when a customer purchases goods weighing 100 kilograms and lives on a very high floor, many personalized requirements such as whether face-to-face delivery is required and whether installation is needed will arise.

Therefore, in addition to providing end-to-end services for overseas Chinese in Canada, JiaYou International has extended its logistics industry chain to launch B2B logistics services, providing a series of after-sales services for overseas brands such as Haier, Midea, and Gree, including warehousing, distribution, installation, and maintenance.

4.  Canada to the US: A New Logistics Solution for Remote US Cities

After years of continuous cultivation, JiaYou International has achieved good results in Canada and gained industry recognition. However, according to Fu Jian, the founder of JiaYou International, this is far from enough. In the next 3-5 years, in addition to laying out in Canada, JiaYou International also plans to build more local logistics infrastructure in Canada and create a logistics route from Vancouver to Seattle, radiating to some cities on the US-Canada border to solve logistics fulfillment and delivery issues in remote US cities.

Currently, many companies in the market shift from the US to Canada. Now, by relying on Canadian local logistics, proposing to extend the service radius to cities on the US-Canada border is a new initiative in the industry.

Regarding the reasons for laying out Canada-US routes, Fu Jian said that it is well known that the United States is a very large market and is currently the absolute mainstream market. For example, Seattle is a remote small city for the United States, about 1,800 kilometers away from the important port of Los Angeles in the western United States, but only 100 kilometers away from Vancouver, Canada. We found that it is possible to achieve a logistics solution from Vancouver to Seattle through logistics distances.

Conclusion

In the small and niche market of Canada with only over 30 million people, focusing on cultivating around one country and one route, and establishing strong local service capabilities in Canada, JiaYou International has set an industry example of "small and beautiful" in the vertical market field. The cross-border logistics industry is never short of opportunities; what is lacking is the focused attitude like that of the JiaYou International team and the craftsmanship spirit of continuously refining product details. It is hoped that with JiaYou International, the industry map of China-Canada cross-border logistics will become even more colorful!