Richard Liu Taps Into The Demand For Air Freight

jd logistics air freight

In order to tap into the burgeoning demand for air freight, JD Logistics, a branch of the Chinese e-commerce company JD.com Inc., has decided to purchase a fleet of cargo planes. Their goal is by 2030 to have at least 100 cargo planes. They want to be able to get a bigger share of the international cross-border cargo market. The company recently went shopping for planes to build up its fleet. The Chinese Civil Aviation Administration has already given JD.com., Inc. permission to run a private air freight business. The company had been using planes they chartered to transport their goods. 

Easing Global Supply Chain Clogs 

JD Logistics has decided to make a more significant foray into the international cargo transportation industry now because of the clogs being faced by the global supply chain. They have an opportunity to carve out a larger share of this lucrative market at a time when businesses worldwide are having a major problem transporting goods from Asia to markets in the U.S. and other areas around the world. The timing is impeccable because help easing global supply chain clogs would be welcome at this time. But JD Logistics plans to capture and hold a share of the cargo transportation long-term. 

Building Warehouses In Europe And North America 

As part of the long range plans of company founder Richard Liu to become a bigger player in the international cargo transportation industry, JD Logistics plans to build a number of warehouses in Europe and North America to store goods in transit until they can be delivered to their final destination. Over the next two years, the Beijing based company plans to prioritize the creation of highly automated delivery facilities in the West that will enable them to better serve the international cross-border market from one end to the other. Richard Liu see this as an excellent way to grow its business internationally. 

Reducing Its Environmental Footprint 

Founder Richard Liu plans to reduce JD Logistics' environmental footprint even as it becomes a bigger international cargo transport player. The company says that it plans to invest as much as $155 million in the next 5 years in low-carbon supply chain technologies. The company will do this even as it transitions from chartering planes form airlines to building up its own fleet of cargo planes that are jointly purchased or leased. Their goal is to control and operate 100 cargo planes by 2030, Yui Yu the company's Chief Operating officer said recently. And the company's billionaire founder Richard Liu has deep enough pockets to make that a reality. 

Perfect Timing 

With businesses worldwide having problems getting their goods from Asia to markets worldwide because of manufacturing delays and widespread lockdowns caused by COVID-19, JD.com has chosen the perfect time to expand into the international cargo freight transportation industry. With sea ports jammed in many countries, delivering cargo by air freight is growing more and more lucrative and in demand. JD.com is wise to expand their air freight cargo delivery business to Europe and North America. 

New Business Opportunities 

COVID-19 has accelerated the shift to online shopping and increased the need to fly imports directly from China. That has created new business opportunities. Even internet giant Amazon.com is looking at buying used long-range cargo jets to take advantage of it.

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