Hanjin, China's AWOT set up e-commerce logistics JV
Sun A Lee
5 HOURS AGO
Hanjin and AWOT Global held their joint venture inauguration ceremony on Sept. 5 Hanjin Transportation Co., a South Korean logistics company, said on Friday it has established an e-commerce logistics joint venture with China’s AWOT Global Corporation to boost global delivery services for Chinese retailers.
Their JV, Hanjin Global Express Shenzhen, is expected to beef up Hanjin's global presence beyond the saturated domestic market, where it is trailing CJ Logistics Corp. and Coupang Logistics Service Co., a unit of the country's largest e-commerce player Coupang Inc..
Under their partnership, AWOT will transport parcels from Chinese online retailers by air freight to South Korea and Japan.
Hanjin will be in charge of their customs clearance and transportation in South Korea and Japan, using its global distribution center in Incheon International Airport, the main air gateway to South Korea and overseas units.
"We'll secure orders from large Chinese retailers by providing all-stop air transporation services from fulfillment to air transport and customs clearance," said a Hanjin official.
Fulfillment refers to the management and storage of inventories for direct shipment to customers.
"In the medium to long term, we'll expand our transport services to Southeast Asia and the US," he added.
AWOT, based in Guangzhou, China, is an Asia-focused logistics company with 50 overseas offices. Its annual revenue stands at 5 trillion won ($3.8 billion).
China’s e-commerce market has been expanding at an annual rate of 23% on average in the past five years, leading to a surge in logistics demand.
The ascent of Chinese online retailers such as AliExpress, Temu and Shein in South Korea is fanning the demand for parcel shipments from China.
Hanjin's distribution center in Seoul Hanjin, an affiliate of Korean Air Lines Co., is keen to expand global delivery service with a focus on the e-commerce market.
Last year, it set up a subsidiary in Japan, followed by the launch of overseas units in Thailand and Singapore this year.
In the first half of this year, its global sales revenue shot up 54% to 257.5 billion won ($194 million) from the year prior.