Chinese company JD Logistics Inc. is looking to establish its plane fleet to gain a larger share of the cross-border freight industry, which is primarily affected by global supply chain confusion. The company’s CEO Yui Yu said that the logistics department of the e-commerce brand was targeting to have at least 100 planes by 2030, comprising aircraft that have been both rented or jointly purchased.
The firm has already made the big step of receiving clearance from China’s Civil Aviation Administration to run its own air cargo business. Previously, the company had been leasing planes from airlines to carry out its cargo transportation.
Across the world, businesses are working hard to find ways to get everything from masks to consumer gadgets out of China. This comes as extensive lockdowns and industrial delays have caused heavy traffic at the country’s maritime terminals. Corporates are resorting to solutions like air freight, but airlines are finding it difficult to handle the congestion and accept new bookings, particularly as the holiday shopping season approaches.
Speaking to Bloomberg TV, Yu Rui, the logistics firm’s CEO, touched on the massive effect that COVID-19 had on supply chain-related sectors worldwide. The pandemic has brought about a scarcity of shipping and aviation freight resources. He said that even though the pandemic’s effects may be short-lived, the Covid-19 situation has spurred the global trend of internet commerce. This is a positive thing for firms like JD Logistics as it provides new business opportunities for them.
JD Logistics follows in the footsteps of other internet juggernauts in purchasing business aircraft and raised $3.2 billion during its Hong Kong IPO in May. Another e-commerce giant with the same vision is Amazon. According to Bloomberg News, Amazon is looking into buying secondhand long-distance cargo aircraft to airlift imports directly from China.
The Beijing-based company plans to boost its abroad warehouse network to expand its worldwide business. In the coming two years, the company plans to establish fully automated distribution facilities in North America and Europe. The CEO added that the goal is to service the cross-border logistics market properly. He was raised in the poverty-stricken village of Chang’an and was motivated by the idea of bringing pork for everybody in his village to enjoy one day.
JD.com was started by Richard Liu, popularly known as Liu Qiangdong. Despite starting as just a small booth, JD.com has since grown to become the world’s third-largest internet corporation by revenue turnover.
Qiangdong’s career covers a long list of professional accomplishments and successful commercial enterprises. He has realized his ambition as an entrepreneur by combining business acumen and personal convictions. In his business journey, Richard Liu has emphasized the significance of customer relations and has always committed to creating a positive influence through commerce.
Richard Liu was born to Chinese peasant farmers in a coal area 700 kilometers south of Beijing. He was raised in the poverty-stricken village of Chang’an and was motivated by the idea of bringing pork for everybody in his village to enjoy one day.
Originally, his family came from a lineage of rich shipowners. However, they were forcefully resettled at least twice after losing everything. According to Qiangdong, his grandparents instilled in him a deep sense of morality on how one should treat and respect others due to their predicament. They reminded him that they once had everything yet lost it all, and the same could happen to anyone.
Qiangdong’s world was confined as he grew up in a small village, but he was always looking for ways to widen his experiences. Later, he was accepted into the People’s University of China after passing the tough entrance tests. The transport fee required was huge, but his neighbors, relatives, and friends came together to support him. Qiangdong studied sociology in campus but was more interested in computer programming and coding.
He had some unsuccessful ventures before JD.com, for example, a restaurant outside the campus and a herbal supplement company. His breakthrough came after the SARS pandemic of 2003 when he used the opportunity to start posting his products on online bulletin boards since conventional stores were closed down.
In 2007, the company started working on a logistics network that involved storage, shipping, and delivery to clients instead of hiring third parties. Since then, the company has grown in leaps and bounds and is one of the biggest e-commerce brands in the world. he was accepted into the People’s University of China after passing the tough entrance tests. The transport fee required was huge, but his neighbors, relatives, and friends came together to support him. Qiangdong studied sociology in campus but was more interested in computer programming and coding.