Friday, July 25, 2014
China Shipping Group and Alibaba partner on e-commerce
China Shipping Group and e-commerce giant Alibaba are partnering to establish an integrated logistics platform, marrying the group's traditional shipping services with an e-commerce platform.
China Shipping Network Technology, a provider of transport information products indirectly held by China Shipping Group, said it signed a framework agreement for cooperation with Alibaba.com and with sister company China Shipping Container Lines, the largest container carrier in China.
The three firms will "put in resources to build an integrated service platform for international shipping which both China Shipping's clients and Alibaba's clients can use for online logistics price inquiry, online ordering, online settlement and online goods tracking," according to the announcement.
Geoffrey Cheng, an analyst at Bocom International, said the move will see CSCL enter the "last mile" business, referring to the last phase in the supply chain before products reach their final destination.
"As the last mile market in China is already dominated by a few companies, it will be difficult for newcomers to make money. Even Alibaba's own logistics network project Cainiao is not doing well," said Cheng.
For more of the South China Morning Post story: scmp.com
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