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(Yicai Global) July 13 -- Cainiao International Express, the logistics arm of Chinese e-commerce giant Alibaba Group Holding, today announced the opening of its distribution centers in Dallas and Chicago, taking their number in the United States to five.
Relying on the five distribution centers, Cainiao International can now deliver a parcel to its destination within 10 days on average, five to six days at the earliest, which is more than 40 percent faster than before.
Distribution centers are in the middle of the logistical process. After parcels complete customs clearance at customs ports, Cainiao can arrange for them to be sent to local distribution centers for sorting by destination.
Some 90 percent of Cainiao’s international express parcels can be sorted within hours, thanks to automatic assembly lines and sorting machines in warehouses. This means goods entering a warehouse at 8 p.m. can be delivered early next morning, it said.
In addition, through cooperation with the US Postal Service, Cainiao’s DDU service covers core city groups, including Los Angeles, New York, and Miami, within 150 kilometers of five major ports on the US West and East coasts.
North America is one of the largest e-commerce markets in the world, achieving a market size of USD944 billion last year. It is expected to reach USD1.7 trillion in 2027, with a compound annual growth rate of 14.3 percent, per market data portal Statista.
Cross-border e-commerce between China and the US has maintained growth in recent years. The US accounted for 34.3 percent of China’s cross-border e-commerce exports last year, according to data from the General Administration of Customs.
Editor: Peter Thomas