Bueno, bonito, barato
Qatar Airways Cargo runs Latin American charter services for Cainiao.
Cainiao, the logistics arm of China’s giant Alibaba, is growing in Latin America too. Having entered the market and expanded there on the wings of Atlas Air (see ITJ Daily of 22 February 2022), the firm has added another airline to its partnership network. Dandy Zhang, the commercial director for global line-haul activities in Cainiao’s cross-border business, and Guillaume Halleux, chief officer cargo for Qatar Airways Cargo, elaborate.
On 5 March Qatar Airways Cargo started a weekly Boeing B777F flight for Cainiao from Hong Kong via Doha to São Paulo GRU. How much freight to do you plan to carry per flight, Mr Halleux?
Guillaume Halleux (GH): We can carry up to 100 t, or a 500 m³ payload, on the Hong Kong–São Paulo route; it varies depending on the type of cargo planned for each flight.
Ms Zhang, Latin America isn’t unknown territory for Cainiao. What does Atlas Air usually fly across the Pacific Ocean for you?
Dandy Zhang (DZ): These daily charter flights enable us to ship parcels to most of Latin America. The main commodities shipped include clothes, electronic equipment, household appliances and beauty products.
Doesn’t a detour via Doha put a bit of a brake on rapid deliveries?
DZ: With air cargo scarcity becoming a huge issue across the world, we consider routes via Doha to Latin America and other transit points to be just as important. We’re looking forward to deepening our existing partnerships and establishing new ones.
One flight a week is considered an entry-level frequency on a route. When are you planning to increase frequencies?
DZ: We don’t have a timeline yet, as further planning depends on parcel volumes between China and Latin America. We’ve seen that Latin America has huge potential for e-commerce, however.
GH: We’ll review peak season demand closely, and continuously analyse our availability. This will help us decide on adding additional frequencies.
Might there be other departure points from China or arrival in Latin America?
GH: Besides Hong Kong we can support multiple points of departure from China, including popular points of origin for large volumes of e-commerce, such as Guangzhou, Shenzhen, Xiamen, Shanghai and Hangzhou. São Paulo is definitely the largest destination in the Latin American market; and scheduled charter demand is high there. Mexico is also an increasingly popular destination.
“A Doha detour doesn’t slow down deliveries.” Dandy Zhang
Qatar Airways isn’t Cainiao’s first cargo partner in this trade. What do you offer your customer, Mr Halleux?
GH: Qatar Airways Cargo has a different business model and strategy. Besides, demand in the e-commerce market is too large to allow for an exclusive partnership or operator. Moreover, e-commerce companies also need the bellies of passenger flights, as they offer high-frequency capacity. We’re proud of our quality, service and years of expertise. Our clients can expect ease of doing business, proactive communication, transparency of information, accessibility and innovative solutions from us.
Why opt for Qatar Airways, Ms Zhang?
DZ: The pandemic has accelerated consumption shifts to digital platforms, and the e-commerce boom. We’re witnessing a phenomenal rise in cross-border trade and parcel volumes, particularly between China and Latin America. As air cargo scarcity has become a huge issue across the globe, on the other hand, we’re deepening partnerships with different airline and logistics partners to ensure cross-border logistics services for our customers as well as for the merchants concerned.
What does it take to respect the specificities of markets in Asia and Latin America?
GH: Nothing but the fundamental 3 Bs! Bueno (decent), bonito (beautiful), barato (cost-effective).
Where else in Latin America does Qatar Airways Cargo already act in line with the three Bs?
GH: We operate a mix of passenger aircraft and Boeing B777Fs from Doha to São Paulo (18 times a week), Mexico City (six), Quito (five), Bogotá and Buenos Aires (three) and Campinas and Santiago de Chile (two a week).
What regional destinations do you serve on the Iberian Peninsula, Mr Halleux?
GH: Our network in Spain covers Madrid (16 flights a week), Barcelona (twelve) and Zaragoza (nine a week). We don’t operate flights to Portugal yet.
What about Cainiao’s market presence in Spain and Portugal, Ms Zhang?
DZ: Spain is one of our most important European markets, and our core logistics product – USD 5 for ten-day delivery – covers Spain and Portugal. We operate eight chartered flights a week from China to Spain. We’ve already launched 400 sets of Cainiao-branded smart lockers as well as a distribution centre in Spain.