Teleport’s largest Southeast Asia network connects shipments from 19 cities in China to 85 cities in Southeast Asia, with extended connectivity to markets beyond.
Teleport, the largest integrated logistics provider in Southeast Asia, is enabling faster and cheaper delivery for e-commerce businesses shipping between China and Southeast Asia by leveraging its largest air network that gives them a favourable cost structure and extended connectivity into the region, it said at its first media briefing in China today.
Cross border e-commerce is expected to contribute almost a third of total air cargo volume by 2027 from less than 10% ten years ago, with demand coming from Asia, as well as the US and Europe, reflecting consumer interest for affordable Chinese goods. By 2027, the gross merchandise volume (GMV) of China’s B2C export eCommerce market is expected to double to 6.05 trillion yuan from 3.23 trillion yuan in 2022. Between China and the top five Southeast Asia ecommerce lanes namely Malaysia, Thailand, Indonesia, Philippines, and Singapore, are expected to generate USD3.8 billion in freight market value by 2025.
Janson Peng, Commercial Country Head, Teleport China shared, “Today’s standard service level for eCommerce marketplaces to move cross-border parcels from China to consumers in Southeast Asia is approximately five days. One, to one and a half days for merchants to pack their parcels to reach the warehouse, and about four days between warehouses in China to destination warehouses in Southeast Asia. We have the ability to cut down the four-day delivery time between China and Southeast Asia, to as fast as the next day, affordably.”
Teleport’s own journey began in 2018, having built its capability from consolidating the total belly space of all six airlines under AirAsia under one network, with the exclusive commercial rights to move cargo on this network. Operating in China since 2019, Teleport’s ability to deliver goods faster between China and Southeast Asia is anchored on the configuration of its hybrid fleet capacity, combined with its unique network and connectivity capability.
- Unique network and connectivity capability: Teleport’s largest air logistics network in Southeast Asia, gives businesses in China access from 19 cities in China to 85 Southeast Asia cities – equivalent to 80% coverage over the whole region, including secondary and tertiary cities. This is further complemented by its first-mile-on-ground capabilities across four cities in Guangzhou, Shenzhen, Hong Kong, and Macau.
- A hybrid cargo fleet capacity: Teleports moves general freight and small parcels such as eCommerce parcels by utilising a combined freighter-passenger belly model. This model allows it to seamlessly move bulked cargo via freighters which can then be distributed through the passenger belly network. It leverages off its hybrid cargo fleet comprising three Teleport freighters, combined with its exclusive commercial rights to AirAsia’s 204 high frequency passenger belly aircrafts, as well as over 40 Air Partners and growing.
Pete Chareonwongsak, CEO of Teleport said, “China and Southeast Asia today are already each other’s largest trade partners — we see this as an opportunity to contribute to this significant relationship by improving how e-commerce connects – specifically, moving parcels faster. Time-sensitive delivery between marketplaces and consumers is no longer a premium option. It is a consumer “ask” and we are confident of our ability to deliver between China and Southeast Asia, faster and cheaper. We have built our unique, multimodal network and hybrid fleet model, instead of a pure freighter play to move goods across Southeast Asia, to ensure that we deliver speed, at a favourable cost.”
Janson added, “Today, we are operating at a frequency of 2214 flights a month – which effectively makes us number one in terms of the most flight frequenciess out of China into Southeast Asia cities; and with the largest number of China airports able to directly connect to Southeast Asia cities – connecting 19 cities in China to over 85 cities throughout Southeast Asia. This includes secondary and tertiary cities across the region, giving businesses in China added coverage that would not necessarily be reached via traditional flight routes. Furthermore, our network allows our customers to move through the region to reach other markets, serving as the perfect transhipment hub to connect Chinese businesses to other major markets such as Oceania, Middle East, Europe and the US.”
Today, Teleport is working with Chinese businesses – from e-commerce marketplaces, cargo companies, to airlines – helping China-based businesses ship goods to arrive the next day into Southeast Asia. Year to date, Teleport has shipped more than 81,000 parcels a day from China into Southeast Asia, with more than 112 tonnes delivered per day, on average. To better serve the China market, Teleport will continue to strengthen its on-ground-first-mile capabilities and expand to more cities, including the Greater Bay Area, with priority custom lanes.
By creating this value for businesses in China with faster delivery compared to industry standards, Teleport aims to grow its daily parcel delivery average to 2 million parcels a day by 2025, from 170,000 parcels per day in 2023.
