1."Amazon to Lease 10 Boeing Freighters

On May 8th, it was announced that Amazon has committed to leasing 10 freighters from Air Transport Services Group (ATSG) and will pay for the operation of these planes for five years. According to the five-year contract, ATSG will begin operating Boeing 767-300 freighters for Amazon's logistics network this summer, with the possibility of adding another 10 aircraft. The agreement also extends existing flight contracts for three more years until the end of this year, with an estimated 50 medium wide-body freighters to be operated for Amazon.

Data shows that despite a decline in online shopping demand since the pandemic, Amazon's parcel volume in the U.S. market has increased, capturing market share from FedEx and UPS. Last year, Amazon shipped 5.9 billion packages, a 16% increase year-on-year, second only to the U.S. Postal Service.

Source: Cross-border E-commerce Logistics Bai Xiaosheng

2.TEMU Launches OBM Entry Channel

On May 8th, it was reported that TEMU, a cross-border e-commerce platform under Pinduoduo, officially launched its OBM channel. As a new supply model for merchants, the OBM channel is open to domestic single-store brand merchants with annual sales exceeding or equal to 1 million RMB. It has been opened to recruit merchants in three major categories: men's clothing, outdoor men's clothing, and maternity wear.

Additionally, merchants must release more than 50 SKUs, and old store entities and their sub-stores cannot enjoy OBM policy benefits. It is reported that for top brand shops that meet the store threshold, TEMU will also provide benefits such as a streamlined review process, direct brand comparison without price review, and exclusive traffic bonuses.

Source: Ebrun

3.Joyed Logistics Group Acquires HYTX Warehouse

On May 8th, Joyed Logistics Technology Co., Ltd. announced that it has signed an equity purchase agreement through its wholly-owned subsidiary Joyed Logistics Services Inc. to acquire 51% of the equity of HYTX Warehouse Inc., further expanding its coverage in the North American logistics market. HYTX is a well-known logistics company headquartered in Azusa, California, with 27 operating locations in the United States and Canada.

Joyed is a leading provider of end-to-end supply chain solutions for cross-border logistics, headquartered in Shenzhen. This acquisition enables Joyed to provide one-stop services for small parcel direct mail, bulk transfer, traditional goods, FBA goods, returns and label replacement for secondary sales, and last-mile delivery arrangements, catering to the diversified needs of overseas warehouses.

Source: Shenzhen Joyed Group

4.EDA Cloud Passes Hearing at HKEX

On May 8th, according to the Hong Kong Stock Exchange, EDA GROUP HOLDINGS LIMITED passed the hearing for listing on the main board of the Hong Kong Stock Exchange, with CMB International as the exclusive sponsor. According to the prospectus, EDA Cloud is a one-stop end-to-end supply chain solution provider for e-commerce seller clients, empowering China's rapidly growing B2C export e-commerce industry.

As of the last feasible date (February 20, 2024), EDA Cloud manages/contracts 53 warehouses in the United States, Canada, the United Kingdom, Germany, and Australia, spanning three continents and more than 20 cities globally, with 44 franchise warehouses among the 53 overseas warehouses.

Source: Zhitong Finance and Economics

5.Hualake Airport Opens Ezhou ⇋ Dhaka International Freight Route

On May 8th, it was reported that a B737 freighter from Dhaka International Airport in Bangladesh landed smoothly at Hualake Airport in Ezhou, carrying textiles and e-commerce goods, marking the opening of the "Ezhou ⇋ Dhaka" international freight route.

The "Ezhou ⇋ Dhaka" route is operated by Tianjin Cargo Airlines Co., Ltd. It is the first international freight route officially opened by the Ezhou Hualake Airport port after passing national acceptance, and the fourth international freight route from Hualake Airport to the Bay of Bengal. The route plans to operate 3 flights per week, providing about 60 tons of outbound capacity per week.

Source: Ezhou Rong Media

6.Global Air Freight Demand Up 10.3% in March

On May 8th, the International Air Transport Association released the Global Air Freight Regular Report for March 2024, showing that air freight demand has grown by double digits for four consecutive months. Global air freight demand, measured in freight tonne kilometers (FTKs*), increased by 10.3% year-on-year in March 2023 (international demand increased by 11.4%); available air freight capacity (available freight tonne kilometers, AFTKs) increased by 7.3% year-on-year in March 2023 (international capacity was 10.5%).

In March, air freight demand for Asia-Pacific airlines increased by 14.3% year-on-year. Demand on the Asia-Europe route increased by 2.7 percentage points to 17.0%, while the Asian inland market increased by 6.7 percentage points to 11.8%. Capacity increased by 14.3% year-on-year.

Source: IATA

7.COSCO Shipping's Q1 Revenue Up 8.09%

On May 8th, COSCO Shipping released its first-quarter report for 2024, with operating revenue reaching 24.287 billion yuan, an increase of 8.09% year-on-year. Net profit attributable to shareholders of listed companies was 803 million yuan, a decrease of 16.05% year-on-year. Net profit attributable to shareholders of listed companies excluding non-recurring gains and losses was 731 million yuan, a decrease of 14.79% year-on-year.

In the first quarter, the company's shipping agency handled 3.226 million TEUs, compared to 2.661 million TEUs in the same period last year; air freight channel business volume was 228,000 tons (including 55,000 tons of cross-border e-commerce logistics), compared to 185,000 tons in the same period last year (including 41,000 tons of cross-border e-commerce logistics); cross-border e-commerce logistics handled 79.11 million tickets, compared to 95.043 million tickets in the same period last year; logistics e-commerce platform handled 521,000 TEUs, compared to 477,000 TEUs in the same period last year.

Source: Logistics Intelligence

8.Amazon North America Updates Low-Inventory Storage Fees

On May 8th, Amazon North America announced adjustments to low-inventory storage fees starting May 15th, along with three additional changes: due to the unpredictability of inventory management for seasonal products and other small-batch products, starting May 15th, low-inventory storage fees will not apply to products with fewer than 20 units sold in the past 7 days; low-inventory storage fees resulting from prolonged inbound and processing times caused by Amazon will be refunded before the next 15th of the following month, for example, fees incurred excessively due to inbound delays in May will be refunded by June 15th.

During the 2024 Prime Day event, additional low-inventory storage fee policies will be provided for products included in flash sales and limited-time deals for Prime members, applicable for four weeks after Prime Day ends.

Source: Amazon

9. Shopee Malaysia Site Updates Delivery Policy

On May 8th, it was announced that Shopee will implement two new delivery policy standards effective June 17, 2024, targeting local Preferred, Preferred+, and Shopee Mall sellers: the average preparation time standard will be replaced by the quick delivery rate. For Preferred and Mall sellers, the quick delivery rate should be ≥60%; for Preferred+ sellers, the quick delivery rate should be ≥70%. The platform's shipping days policy will be expanded to include Saturdays in the assessment.

Source: Shopee

10. eBay Q1 Net Revenue Reaches $2.6 Billion

On May 8th, eBay released its first-quarter financial data, with net revenue reaching $2.6 billion for the quarter, exceeding analysts' expectations of $2.53 billion. The first-quarter active buyers were 132 million, slightly higher than analysts' expectation of 131.18 million. Second-quarter net revenue is expected to range from $2.49 billion to $2.54 billion, while analysts' expectation is $2.56 billion.

Source: eBay

11. COSCO Shipping Opens Qinzhou to Thailand QTS Direct Shipping Route

On May 8th, COSCO Shipping, in cooperation with Beibu Gulf Port, added a container direct shipping route to Laem Chabang, Thailand, further enhancing the efficiency and convenience of maritime transportation. The route sequence is Qinzhou—Nansha—Shekou—Laem Chabang—Qinzhou, operating weekly. The opening of this route aims to accelerate the construction of the China-ASEAN Fruit Trading Center and create an important carrier for the integrated development of China-ASEAN cross-border industries.

Source: COSCO Shipping

End

Cross-border E-commerce Logistics Bai Xiaosheng