The air cargo market has witnessed a steady shift towards e-commerce over the past few years, with the sector becoming a vital component of the industry.
This was accelerated by the disruptions caused by the pandemic, prompting a rapid transition from traditional airfreight to e-commerce logistics, with this mode emerging as the preferred channel for both Business-to-Business (B2B) and Business-to-Consumer (B2C) trade.
“Our agile structure and commitment to customer requirements enable us to deliver the speed and reliability essential for the demands of the e-commerce market,” Vikram Vohra, Saudia Cargo’s Regional Director – Far East, explained.
“By continuously adapting to changing dynamics and leveraging collaborations, Saudia Cargo ensures efficient and reliable services for e-commerce shipments.”
New routes
The introduction of the new route between Saudi Arabia and Shenzhen serves as a pivotal link between the Middle East and the burgeoning Asian market, especially in the realm of e-commerce logistics.
Given Shenzhen’s status as a hub for major Chinese e-commerce platforms and its prominence as a modern industrial and sourcing centre, this route provides exclusive and direct connectivity between South China and Saudi Arabia, facilitating seamless trade between the two regions.
“The selection of the Shenzhen-Riyadh route reflects Saudia Cargo’s strategic vision, recognising the rapid growth and importance of both regions in global trade dynamics,” Vohra outlined.
“With an existing presence in South China through operations in Guangzhou and Hong Kong, the addition of Shenzhen complements Saudia Cargo’s service portfolio in the region, meeting customer preferences and enhancing connectivity between South China and Saudi Arabia.
“We recognise the widespread influence of the e-commerce surge across major international trade routes, including significant growth within intra-Asia markets.
“While our attention is on expanding in Hong Kong and Greater China, we’re also exploring opportunities in secondary markets, not limited solely to e-commerce.”
Seasonal or sustainable
Seasonality plays a role in impacting consumer behaviour and, in turn, air cargo volumes for e-commerce. Strategic planning and an adaptive approach are crucial to ensure operational efficiency amid this fluctuation.
“Saudia Cargo views the surge in e-commerce demand as a sustainable sector rather than a temporary phase,” Vohra explained.
“Our strategic positioning in this region, provides us with the long-term sustainable outlook needed to navigate this evolving landscape.
“This perspective is based on a deep understanding of market dynamics, a proactive approach to adaptation, and commitment to innovation. It aligns perfectly with our goal of meeting evolving customer needs and driving continuous growth.
“Saudia Cargo remains committed to investing in e-commerce to capitalise on future opportunities and maintain our position in the industry.”
Wider role
The new route between Saudi Arabia and China extends beyond e-commerce logistics, fostering a robust trade relationship across various sectors. Saudia Cargo’s unwavering commitment to meeting diverse cargo needs, covering general cargo to hi-tech production and project-based businesses, has been a cornerstone of operations for many years.
“This dedication underscores Saudia Cargo’s focus on serving both e-commerce and non-e-commerce sectors alike, ensuring comprehensive support for the evolving demands of global trade,” Vohra stated.
The partnership between Shenzhen streamlines e-commerce logistics but also boosts economic integration between Shenzhen and the Belt and Road countries. Leveraging Shenzhen Airport’s dynamic air logistics ecosystem, Saudia Cargo encourages airlines to expand their capacities within Shenzhen’s market.
“Saudia Cargo collaborates closely with leading e-commerce platforms, including Cainiao and Shein, to facilitate air cargo movements between Saudi Arabia and China. This collaboration extends to all major e-commerce players active in this sector, both directly and indirectly, with Saudia Cargo serving as an enabler for those at entry-level stages to develop their presence in the China-KSA lane,” he added.
“Leveraging these partnerships, Saudia Cargo enhances the efficiency of e-commerce logistics operations, ensuring seamless transportation of goods between the two countries.”
