JD Logistics raises US$3.1b in IPO, launches charter flights
JD has opened an air cargo route to Thailand and will operate all-cargo charter flights between Shenzhen and Bangkok three times a week,
May 29, 2021
By PLA Editor
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Chinese e-commerce giant JD has opened an air cargo route to Thailand and will operate all-cargo charter flights between Shenzhen and Bangkok starting 28 May, marking its first in the Asia Pacific region.
The move comes after the company successfully listed on the Hong Kong bourse, with the IPO raising an estimated HK$24.11 billion or around US$3.1 billion.
The charter flights will run between Shenzhen Bao’an Airport and Bangkok Suvarnabhumi Airport three times a week with same-day return and are open for SMEs in both countries.
“This end-to-end fully self-operated and full-link transportation route will not only greatly increase the speed of cross-border freight, but also provide vigorous support for the development of cross-border business through both Thai and Chinese e-commerce channels, including JD.com and JD’s joint venture in Thailand, JD Central (JDC),” the company expressed in a statement.
The Alibaba rival says aside from Chinese exports like daily necessities, small household appliances, 3C products and other e-commerce goods and Thai exports such as fresh produce and auto parts, the all-cargo charter flights will be available for SMEs that aim to expand business into other categories.
“JD is excited for this opportunity to leverage our international supply chain resources to strengthen the relationship between Thailand and China, and to facilitate the transport of high-quality Chinese goods going to Southeast Asia and vice versa,” said Stard Huang, head of JD’s international logistics business.
“We see enormous potential in Southeast Asia, and this is just the first step.
JD Logistics has been developing an ‘integrated supply chain’ since 2017 and now operates a network of over 1,000 warehouses. In China the company has 32 bonded warehouses, including a fully unmanned warehouse which can process more than 1.3 million orders per day during peak seasons.
With the IPO, the company will use the proceeds to upgrade and expand its logistics networks as well as develop advanced technologies to be used in its supply chain solutions and logistics services.