1. SHEIN partners with Happy Returns to implement the BORIS return scheme

   On May 7th, it was announced that Happy Returns, a subsidiary of UPS, launched the Buy Online, Return In-Store (BORIS) solution to assist retailers in developing a reverse logistics network linked to physical brand locations. This enables retailers to accept returns without packaging or labels and facilitates exchanges across store networks.

 E-commerce giant SHEIN and retailer Forever 21 are the first cross-brand partners to adopt BORIS. The program, initiated in early April, allows SHEIN shoppers to use generated QR codes from the SHEIN website to be verified by Forever 21 associates, who then return the items to SHEIN.

   Source: SUPPLYCHAINDIVE

2. De Well Holdings Limited receives notification for U.S. listing, with Alibaba holding approximately 30%

   On May 7th, the China Securities Regulatory Commission's International Cooperation Department disclosed the overseas issuance and listing filing notice for De Well Holdings Limited. According to the filing notice, De Well Holdings plans to issue no more than 299,054,373 ordinary shares and list on either the NASDAQ Stock Market or the New York Stock Exchange in the United States. 

Notably, this is one of the few "Hong Kong to U.S." listings in the past year. As an end-to-end cross-border supply chain solutions provider, De Well Holdings' services cover sea freight logistics, air freight logistics, and fulfillment value-added services. In September 2021, Alibaba invested approximately $67.22 million in De Well Holdings, holding 29.5% of its shares before the IPO, making it the largest external investor.

   Source: IPO Early Know

3. SF Express introduces "Eight Major Strategies" for the first time

   On May 7th, SF Express held its annual shareholders meeting, with around 40 investment institutions and individual shareholders such as Southern Fund and JPMorgan attending. Wang Wei, Chairman and CEO of SF Holdings, led the executive team to interpret the 2023 annual report and 2024 first-quarter performance, and for the first time proposed the eight major strategies and five major initiatives for 2024. 

The eight major development strategies for 2024 are: comprehensive logistics, leveraging overseas opportunities, flat hierarchy, specialized personnel, advancing to the front line, stable promotion of reform, environmental leadership, and cultural integration with speed and warmth.

   Source: Express Magazine

4. "Ezhou ⇋ Chicago" international freight route officially opened

   On May 7th, a Boeing 747-400 freighter safely arrived at Ezhou Huahu Airport, loaded with 105 tons of cargo, and is scheduled to fly to O'Hare International Airport in Chicago. This marks the official opening of the "Ezhou ⇋ Chicago" international freight route, the first to connect the central regions of China and the United States. 

Previously, Ezhou Huahu Airport had opened two direct international freight routes to the United States: "Ezhou ⇋ New York" and "Ezhou ⇋ Los Angeles." The introduction of the "Ezhou ⇋ Chicago" freight route by Kerry Logistics will contribute to the establishment of an "air bridge" promoting economic and trade exchanges between China and the United States.

   Source: Ezhou Huahu Airport

5. Ezhou Huahu Airport officially opens to the public

   On May 7th, Ezhou Huahu Airport officially passed the national acceptance inspection as an aviation port open to the public. This signifies the official opening of this "Asia's first and China's only" professional cargo hub airport, which will soon be renamed as "Ezhou Huahu International Airport." 

As the first specialized cargo hub airport approved for opening to the outside world nationwide, this event marks another major milestone in the process of opening up Ezhou and even Hubei to the outside world, following the State Council's approval on March 19th. It is understood that the airport's cargo flight volume and cargo volume rank fourth and sixth in the country, respectively, with a single-day peak cargo flight takeoff and landing exceeding 120 flights and a cargo throughput of over 3,000 tons.

   Source: Lin Kong Xin Ezhou

6. UPS and FedEx raise shipping prices

   On May 7th, UPS and FedEx announced an increase in fuel surcharges, with UPS raising its U.S. domestic ground, air, and postal fuel surcharges by 50 basis points from April 29th, while FedEx raised its U.S.

 ground and express fuel surcharge tables by 100 basis points from May 6th. This will increase the price of each package, adding additional pressure to shippers. Last December, these two major courier giants also raised fuel surcharges.

   Source: Cross-Border E-commerce Logistics Insights

7. Amazon's Q1 net profit increased by 229% year-on-year

   On May 7th, Amazon released its financial report for the first quarter of 2024 ending March 31st. In this quarter, Amazon's revenue was $143.313 billion, a year-on-year increase of 13%; operating profit was $15.307 billion, a year-on-year increase of 219%; and net profit was $10.431 billion, a year-on-year increase of 229%. 

Core e-commerce sales in the first quarter increased by 7% to $546.7 billion, compared to $511 billion in the same period last year. Shipping costs (including sorting and delivery center costs as well as transportation costs) were $21.8 billion, up 10% year-on-year. It is reported that Amazon delivered more than 2 billion same-day or next-day packages in the first quarter. 

It has over 100 fulfillment and sorting centers in the United States and over 185 centers globally. California, Texas, Illinois, Florida, and Pennsylvania are the states with the most Amazon warehouse locations.

   Source: Amazon

8. Maersk's Q1 air freight volume increased by 52% year-on-year

   On May 7th, Maersk released its financial data for the first quarter of 2024. The air freight volume in Q1 increased by 52% compared to the same period in 2023, remaining flat with the fourth quarter of 2023, reaching 85,000 tons in the first quarter of 2024. The improvement in demand stems from shifts in container trade patterns in response to the situation in the Red Sea/Aden Gulf and the surge in e-commerce.

 Global air freight forwarding demand is expected to increase by 4% to 5% year-on-year in Q1 after experiencing seven quarters of contraction. Logistics and service revenue increased to $3.5 billion, while EBIT revenue in the first quarter decreased from $135 million in the previous year to $54 million. Despite a significant increase in business volume, profit margins remained at an unsatisfactory level due to low warehouse utilization rates and short-term challenges in implementing new customer contracts in the North American ground freight business.

   Source: Cross-Border E-commerce Logistics Insights

Title: Key Developments in Cross-Border E-commerce Logistics

9. COSCO Shipping's Self-Operated Overseas Warehouse in Western USA Fully Operational

   On May 7th, COSCO Shipping actively expanded its global warehouse network to better serve the increasing logistics demands of cross-border e-commerce sellers. On April 29th, the self-operated overseas warehouse in Western USA commenced operations. Located in the prime service area of Los Angeles, the warehouse is 72km from USLSA and 92km from LAX, with a driving distance of 60 minutes.

   Source: COSCO Shipping

10. China Eastern Airlines Logistics Establishes a Cold Chain Logistics Company with 300 Million Yuan Investment

    On May 7th, according to Tianyancha data, China Eastern Cold Chain Logistics Co., Ltd. was established with a registered capital of 300 million yuan. Its business scope includes road freight transportation, international road freight transportation, air international freight transportation agency, and land international freight transportation agency. The company is wholly owned by China Eastern Airlines Logistics.

    Source: Tianyancha

11. Inauguration of the First Direct Shipping Route to South America from Beijing-Tianjin-Hebei Region

    On May 7th, as the "COSCO Shipping Argentina" set sail loaded with container goods such as engineering machinery and electronics from Beijing-Tianjin-Hebei and other regions, heading to ports on the east coast of South America including Rio de Janeiro, Santos, Itapua, and Navegantes, it marked the official opening of the first direct shipping route to South America from the Beijing-Tianjin-Hebei region in recent years. This is also the first South American BRICS container shipping route added to Tianjin Port this year.

    It is reported that the newly opened Tianjin-South America direct shipping route, operated by COSCO Shipping, will deploy 12 vessels with a capacity of 14,000 standard containers each week. This will effectively shorten the delivery time from Tianjin to Brazil from the original 54 days of transit to 40 days, thus significantly boosting trade between northern China and South American countries and regions.

Source: North Network

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Public Account: Cross-Border E-Commerce Logistics Baixiaosheng