Hanjin, China's AWOT set up e-commerce logistics JV

Hanjin Transportation Co., a South Korean logistics company, said on Friday it has established an e-commerce logistics joint venture with China’s AWOT Global Corporation to boost global delivery services for Chinese retailers.

Their JV, Hanjin Global Express Shenzhen, is expected to beef up Hanjin's global presence beyond the saturated domestic market, where it trails CJ Logistics Corp. and Coupang Logistics Service Co., a unit of the country's largest e-commerce player Coupang Inc.

The JV launch came after Hanjin and AWOT inked an MOU for logistics business cooperation last November.

Under their partnership, AWOT will transport parcels from Chinese online retailers by air freight to Korea and Japan.

Hanjin will be responsible for their customs clearance and transportation in Korea and Japan, using its global distribution center at Incheon International Airport, the main air gateway to Korea and overseas units.

"We'll secure orders from large Chinese retailers by providing all-stop air transportation services, from fulfillment to air transport and customs clearance," said a Hanjin official.

Fulfillment refers to the management and storage of inventories for direct shipment to customers.

"Over the medium to long term, we'll expand our transport services to Southeast Asia and the US," he added.

AWOT, based in Guangzhou, China, is an Asia-focused logistics company with 50 overseas offices. Its annual revenue stands at 5 trillion won ($3.8 billion).

China’s e-commerce market has been expanding at an average annual rate of 23% over the past five years, leading to a surge in logistics demand.

Demand for parcel shipments to China is being fanned by the ascent of Chinese online retailers such as AliExpress, Temu and Shein in Korea.

Hanjin, an affiliate of Korean Air Lines Co., is keen to expand global delivery services with a focus on the e-commerce market.

Last year, it set up a subsidiary in Japan, followed by the launch of overseas units in Thailand and Singapore this year.

In the first half of 2024, its global sales revenue shot up 54% to 257.5 billion won ($194 million) compared with the year prior.
 
Write to Sun A Lee at suna@hankyung.com
 

Yeonhee Kim edited this article