China Shipping, Alibaba join up for integrated logistics platform
State-owned freight firm partners with e-commerce giant to offer integrated platform
PUBLISHED : Saturday, 12 July, 2014, 12:52am
UPDATED : Saturday, 12 July, 2014, 4:59am
News
01 Jul 2014
Only four countries NSA couldn't spy on, latest Edward Snowden leak…
News
25 Jun 2014
US Congress pokes Beijing with ‘Liu Xiaobo Plaza’ Washington embassy…
Business
14 Jul 2014
Chinese banks rely on local branches for offshore debt
News
11 Jul 2014
‘Sex for secrets’ North Korean ex-spy finds herself ostracised and…
News
24 Jun 2014
Hong Kong Airlines staff may stage 'No Putonghua' protest after sit-in
Sport
27 Jun 2014
World Cup diary: Never mind Suarez and Ghana - Neymar's been caught…
Comment
11 Jul 2014
Letters to the Editor, July 11, 2014
Business
01 Jul 2014
Hong Kong's public housing policy a homewrecker for poor couples
Property
09 Jul 2014
Landlords forced to lower asking rents as mainland tourist spending…
Sport
13 Jul 2014
Louis van Gaal says Arjen Robben is welcome to join him at Manchester…
Comment
04 Jul 2014
Transformers: Age of Extinction is a terrible film, but hilarious to…
Business
23 Jun 2014
Shangri-La, SCMP in top five influential Hong Kong brands list
Sport
06 Jul 2014
Ronaldo condemns 'evil' tackle that sent Neymar out of World Cup
Sport
09 Jul 2014
Mauling could outrank even 1950 final defeat, say shellshocked Brazil…
Business
14 Jul 2014
Alibaba partners tighten grip in revised filing before IPO
China Shipping Network Technology (CSNT), a provider of transport information products indirectly held by China Shipping Group, signed a framework agreement for cooperation with Alibaba.com and with sister company China Shipping Container Lines (CSCL). Photo: Corbis
State-owned China Shipping Group, through two subsidiaries, will partner with Alibaba to establish an integrated logistics platform, combining its traditional shipping services with e-commerce.
China Shipping Network Technology (CSNT), a provider of transport information products indirectly held by China Shipping Group, said yesterday it signed a framework agreement for cooperation with Alibaba.com and with sister company China Shipping Container Lines (CSCL), the biggest operator of container vessels in China.
The three companies will "put in resources to build an integrated service platform for international shipping which both China Shipping's clients and Alibaba's clients can use for online logistics price inquiry, online ordering, online settlement and online goods tracking", the announcement said.
The companies did not put a price tag on the deal or reveal the details.
The mainland-listed shares of both CSNT and CSCL surged by the daily limit of 10 per cent on the news.
Kelvin Lau, an analyst with Daiwa Securities, said it remains to be seen how shippers and freight forwarders react to online settlements as the industry has traditionally preferred direct debit as the means of payment.
CSCL reported a net loss of 262 million yuan (HK$329 million) last year.
Geoffrey Cheng, an analyst at Bocom International, said the move will see CSCL enter the "last mile" business, referring to the last leg in the supply chain before products reach their final destination
He was pessimistic about the venture because this sector typically has low profit margins.
"As the last mile market in China is already dominated by a few companies, it will be difficult for newcomers to make money. Even Alibaba's own logistics network project Cainiao is not doing well," he said.
China Shipping Network Technology (CSNT), a provider of transport information products indirectly held by China Shipping Group, said yesterday it signed a framework agreement for cooperation with Alibaba.com and with sister company China Shipping Container Lines (CSCL), the biggest operator of container vessels in China.The three companies will "put in resources to build an integrated service platform for international shipping which both China Shipping's clients and Alibaba's clients can use for online logistics price inquiry, online ordering, online settlement and online goods tracking", the announcement said.
The companies did not put a price tag on the deal or reveal the details.
The mainland-listed shares of both CSNT and CSCL surged by the daily limit of 10 per cent on the news.
Kelvin Lau, an analyst with Daiwa Securities, said it remains to be seen how shippers and freight forwarders react to online settlements as the industry has traditionally preferred direct debit as the means of payment.
CSCL reported a net loss of 262 million yuan (HK$329 million) last year.
Geoffrey Cheng, an analyst at Bocom International, said the move will see CSCL enter the "last mile" business, referring to the last leg in the supply chain before products reach their final destination
He was pessimistic about the venture because this sector typically has low profit margins.
"As the last mile market in China is already dominated by a few companies, it will be difficult for newcomers to make money. Even Alibaba's own logistics network project Cainiao is not doing well," he said.
This article appeared in the South China Morning Post print edition as China Shipping, Alibaba join up for the 'last mile'
No comments:
Post a Comment