Cainiao is launching a new freigher service from Shenzhen and Hong Kong to east Malaysia as it looks to reduce shipping times for e-commerce platform Lazada.

The new service will operate three-times-per-week to Kota Kinabalu, Sabah, and Kuching, Sarawak.

The logistics firm said that the flights would shorten average delivery time by two days, from 14 to 12 days or as fast as seven days. Logistics costs could come down by as much as 50%, the company added.

“Traditionally, shipping to East Malaysia such as Sabah and Sarawak entails multiple modes of transportation comprising international freight to Malaysia’s airport in Kuala Lumpur, domestic flight to Kota Kinabalu, Sabah, or Kuching, Sarawak, followed by last mile courier delivery to consumers’ doorsteps,” the company said.

“Currently, pandemic and movement control order (MCO) restrictions on international and domestic commercial and cargo flights have further lengthened delivery time and exacerbated delivery challenges.”

Cainiao said the new flights come as industry data suggests Malaysia's e-commerce market will more than double in value from $6bn last year to $13bn in 2025.

In November last year, the logistics company began operations at its Cainiao Aeropolis eWTP Hub, an e-fulfillment hub located at Kuala Lumpur International Airport.

“Against the backdrop of growing consumer demand and increased e-tailer competition, superior logistics services will continue to be the key differentiator for merchants to improve customer experience and establish their competitive edge.” said Shawn Louis, executive general manager for Cainiao.

Lazada is an Alibaba-owned e-commerce platform covering the Southeast Asia region.

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