Shopping sites delivering from China are rushing to build their own global freight networks, as the coronavirus pandemic and new US shipping rules threaten the supply of packages to the west in the run-up to Christmas, reported the Financial Times.
Stung by rising costs after a new postage deal was struck last year between the US and the United Nations’ postal body, bargain sites such as Wish and AliExpress have invested heavily to handle their own flow of goods, said the FT.
“Logistics has become paramount,” said San Francisco-based Wish, which has merchants based in China, and this month raised $1.1 billion in its initial public offering on the Nasdaq exchange.
Alibaba is both building out overseas warehouses and its own logistics network. “We have about 40-50 chartered planes every week flying all around the world,” said Li Dawei, AliExpress’ supply chain director. The company works with local partners for so-called “last-mile” delivery.