Southern Airlines Logistics plans to spin off and go public; Tik Tok is restructuring its e-commerce department

Southern Airlines Logistics to spin off and go public; Tik Tok restructuring e-commerce department

1. Southern Airlines Logistics plans to spin off and list

On May 24th, Southern Airlines held its first temporary shareholder meeting of 2023 in Guangzhou. The proposal of “Separating the subsidiary Southern Airlines Logistics Co., Ltd. to be listed on the main board of the Shanghai Stock Exchange” was passed.

It is reported that currently Southern Airlines Logistics has achieved an annual revenue of over 20 billion yuan, has the largest wide-body cargo fleet in the country, and the largest belly cargo capacity in the country, with 16 Boeing 777 all-cargo aircraft and 850 belly resources of Southern Airlines passenger aircraft, which can ensure more than 2,000 flights to the world every day.

Source: Southern +

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2. CMA CGM Air Cargo exits the US market

On May 24th, CMA CGM Air Cargo confirmed its exit from the US market and will redeploy its planes to Asia and the Middle East. CMA CGM’s website no longer shows Chicago and Miami as destinations for its cargo routes. According to data from the flight tracking website Flightradar24, CMA CGM’s last plane left Chicago on April 29th. The cargo planes originally used on the Chicago route are now being transferred to a new route in Mumbai, India.

Source: FreightWaves

3. Alaska Airlines’ first Boeing 737-800 for “passenger-to-freighter” conversion begins

On May 24th, it was reported that at the end of last year, Alaska Airlines chose Boeing to convert two Boeing 737-800 passenger aircraft in its fleet into cargo planes for use by Alaska Airlines Cargo. The conversion process of the first plane has begun. These two aircraft to be converted will be leased from BBAM, a well-known aircraft leasing and cargo conversion industry.

Previously, the company’s 15-year-old Boeing 737-800 aircraft landed at Cooperativa Autogestionairia de Servicios Ae roi ndustriales (COOPESA) in San Jose, Costa Rica for refurbishment work. The airline expects the refurbishment of two aircraft to be completed in early 2024 and they will be renamed as Boeing 737-800BCF (Boeing Converted Freighter).

Source: Simple Flying

4. Multiple shipping companies announce the implementation of this surcharge

On May 24th, due to severe drought, the Panama Canal Authority has adjusted the draft restrictions for large vessels several times. To address these restrictions, multiple shipping companies have announced weight limits or surcharges of $300 to $500 per container, effective from June 1st.

Previously, Hapag-Lloyd announced on their official website that they will begin charging the Panama Canal Surcharge (PCC) for all cargo transported from East Asia to North America starting from June 1, 2023. The charge for all types of containers will be $500 per container.

Daewoo Shipping also announced the implementation of the Panama Canal Surcharge effective June 1st, charging $300 per container for dry and refrigerated containers transported from Asia (including China, Hong Kong, Taiwan, Korea and Japan) to all ports on the US East Coast, US Gulf Coast and Canada.

In addition, COSCO, OOCL, APL, Evergreen, MSC and other shipping companies have weight limits ranging from 6-10 tons/TEU to the US East Coast, including container weight (may vary by port).

Source: Logistics Baba

5. Amazon adds Evri delivery service

On May 24th, Amazon announced that the UK delivery company Evri has become its carrier for Seller Fulfilled Prime. Now, UK sellers can choose Evri’s delivery service to fulfill their orders to customers.

Evri has already started providing delivery services to individual sellers. This cooperation will enable about 85,000 small and medium-sized enterprises in the UK to choose Evri as the delivery service provider for Prime and non-Prime orders. It is understood that Evri is the preferred partner of over 80% of the largest retail brands in the UK, including Next, John Lewis, M&S, and ASOS, etc. Evri has already cooperated with more than 1,000 small and medium-sized enterprises in the UK retail industry and other industries.

Source: DeliveryX

6. TikTok restructures its e-commerce department to focus on the UK and US markets

On May 24th, TikTok restructured its e-commerce business to refocus on markets such as the UK and the US. Reports suggest that TikTok Brazil’s staff responsible for launching TikTok Shop in the country are being transferred to markets where the service has already been launched, such as the UK, the US, and Southeast Asia. Meanwhile, staff who have been working to introduce the service to Spain are being transferred to London. In addition, Joe Jiao, the former head of e-commerce in Spain, has recently been promoted to operate e-commerce for small businesses in the UK.

Source: Jiemian News

7. Shopee updates its COD return policy

On May 24th, Shopee announced an update to its return policy. Buyers who choose the “cash on delivery” (COD) option can directly return the goods if they find that the product does not match the description during face-to-face inspection. Currently, this policy has come into effect and applies only to the ShopeeXpress delivery service, which supports returns at the delivery location.

Although Shopee has stated that this policy will not affect the return rate and therefore has a small impact on platform sellers’ performance. However, as this policy actually shortens the customer’s return process, many customers may impulsively return goods, thus increasing the possibility of returns.

Source: BusinessDialogue

8. Multiple global delivery companies have achieved impressive results.

On May 24th, multiple global delivery companies demonstrated their strengths and achieved relatively good results.

Singapore Post achieved a revenue growth of 12.4% in the 2022-2023 fiscal year (ending March 31, 2023), reaching a record high of SGD 1.87 billion (approximately RMB 5.2 per SGD), with 86% of the revenue coming from international business.

Austrian Post achieved revenue growth in all departments in the first quarter of this year. In Q1 2023, Austrian Post’s revenue grew by 10.5% to EUR 664.7 million (approximately RMB 7.58 per EUR). The profit before tax, interest, depreciation, and amortization increased by 17.1% to EUR 95.1 million, and the operating profit increased by 18.7% to EUR 47 million. Austrian Post’s net profit was EUR 32 million, a year-on-year increase of 4.9%.

Middle Eastern delivery giant Aramex announced its Q1 financial report for this year. During the reporting period, its revenue was AED 1.43 billion (approximately RMB 1.9 per AED), a year-on-year decrease of 1%, and the operating profit was AED 63 million, a year-on-year decrease of 16%. Aramex’s freight forwarding business performed well, with revenue remaining stable at AED 385 million and profits increasing. The revenue of logistics and supply chain solutions decreased by 5% year-on-year to AED 107 million, but gross profit increased by 23%.

Source: China Postal Express & Logistics News

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