CJ Logistics extends distribution network for Korean sellers

CJ Logistics America's delivery trucks (CJ Logistics)

South Korea's top logistics firm CJ Logistics said Wednesday that it has established cross-border e-commerce partnerships with leading logistics companies in the United States and Japan to strengthen the distribution network for Korean sellers abroad.

In the US, CJ Logistics will handle air freight forwarding to Los Angeles International Airport and New York's JFK International Airport, while multiple local partners, including FedEx, will manage final delivery services.

Japan's top two local couriers have also made contracts with the company to handle delivery of direct purchase products arriving at Tokyo's Narita International Airport.

CJ Logistics declined to specify its US and Japanese partners, citing contract conditions.

"We have laid the foundation for direct purchase logistics business by establishing networks with logistics companies in countries with high demand," Jang Young-ho, head of CJ Logistics' International Freight Solutions Division, said. "We will build a closer global network and lead the cross-border logistics market through synergy with the forwarding business."

In April, the company signed a customs clearance and delivery service contract with Ninja Van, a leading logistics provider in Southeast Asia.

Established in Singapore in 2014, Ninja Van offers customs clearance and delivery services with real-time transportation tracking systems in six countries: Malaysia, Indonesia, Vietnam, the Philippines and Thailand. When CJ Logistics ships goods to Southeast Asia via air freight forwarding, Ninja Van will comprehensively manage customs clearance and delivery in the six countries.

CJ Logistics explained that such a network established in the US, Japan and Southeast Asia will allow Korean sellers to complete the entire process of reaching final consumers through CJ Logistics, without the need to find separate logistics providers for customs clearance and delivery. They also noted that cooperation between global logistics companies could significantly reduce costs compared to existing international express services.

As for the outlook on popular products, the company predicted that the logistics business for K-pop merchandise and albums for fandom customers will accelerate, as well as K-beauty and fashion items.

According to Statistics Korea, the total value of online overseas direct sales reached 1.6 trillion won ($1.2 million) last year, including 228.1 billion won in the US, 226.7 billion won in Japan and 90.8 billion won in Southeast Asian countries.

By Kim Hae-yeon(hykim@heraldcorp.com)