Ali, customs clearance and competitive shipping services expected to stay primary contract for CJ Logistics

Delivery time2024-03-21 12:11

CJ Logistics pays 80%… The rest is distributed to Hanjin and post offices.

(Seoul = Yonhap News) Reporter Seong Hye-mi = On the 21st, it was confirmed that Chinese e-commerce platform AliExpress is holding a competitive bid to select a company to handle customs clearance and shipping in Korea for one year starting in May.

AliExpress' domestic shipping contract is currently in the form of a “multi-party contract”, with CJ Korea Express handling 80% of the contract and Hanjin and the Post Office handling the rest. This year's agreement is also expected to be a “multilateral agreement”.

CJ Logistics delivery vehicle

(Yonhap News file photo)

According to the distribution industry, the customs contract between CJ Logistics and AliExpress is scheduled for the end of May, and the shipping contract for the end of June.

AliExpress recently issued a RFP to domestic courier and logistics companies to select a company to handle customs clearance and shipping from May to next May.

AliExpress entered the Korean market last year and signed a private contract with CJ Logistics, the number one company in the courier industry, but has reportedly decided to conduct competitive bidding starting this year in accordance with the company's internal regulations.

The industry expects AliExpress to submit a bid but maintain a “multilateral agreement” to control variables that may arise during the logistics process.

In order to maintain the “Guaranteed Arrival Service”, there is a possibility that the main contract will be kept with CJ Logistics, and the remaining contracts will be signed with Hanjin, Lotte Global Logistics, etc.

When changing the main contract, it may take at least 3 to 4 months to build the logistics and stabilize the system.

Both parties said that rumors of a “rift” between the two companies raised in the market were untrue.

“We currently maintain a good strategic partnership with CJ Logistics. It is true that we are open to relationships with other domestic partners.”

Some analysts say that Ali Express's use of a competitive price card is a strategy to gain an advantage in unit price negotiations.

Report via KakaoTalk okjebo

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2024/03/21 12:11 Sent

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