The new scheduled charter service between China and Canada will strengthen relations and capitalize on China’s growing e-commerce market.
Cargojet has entered into a three-year agreement with Great Vision HK Express, a China-based logistics company, to provide a scheduled charter service between Hangzhou, China, and Vancouver, B.C. The total revenue for this charter service program is estimated at over $160 million for the entire agreement term.
The Cargojet charter service, which started May 22 and operates B767-300F aircraft, has already completed eight successful flights. It will operate a minimum of three flights per week.
This collaboration between Cargojet and Great Vision HK is expected to strengthen both companies’ operational efficiency and service offerings. It will also provide a dependable logistics solution for e-commerce businesses.
Jamie B. Porteous, co-chief executive officer of Cargojet, highlighted that the company’s industry-leading, on-time performance and reliability, combined with connection opportunities from Vancouver to fifteen other Canadian cities, will enable Great Vision HK to offer superior services to their e-commerce clients in China, ensuring swift and reliable delivery to customers across Canada.
Christine Cheng, co-founder and COO at Great Vision HK, noted that this partnership marks a significant milestone for their company. The company offers China-to-Canada-to-China logistics services that include pick-up, pre-sorting, international air freight, customs clearance, distribution, last-mile delivery, and after-sales services.
The air cargo market has recently witnessed massive growth, driven by the boost in B2C shipments from Chinese e-commerce platforms and fast-fashion companies such as Temu and Shein.
Cargojet’s new charter service will support this growth. It will also improve the reliability and efficiency of supply chains between China and Canada, emphasizing the importance of solid logistics solutions to help businesses maintain a competitive edge. This enhanced logistical support will help mitigate delays, reduce costs, and ensure timely delivery of goods.
Cargojet, a leading provider of time-sensitive air cargo services in North America, carries over 25,000,000 pounds of cargo weekly across its network. It operates across 16 Canadian cities every day.
In April 2021, Cargojet signed an agreement with Amazon Canada to expand its existing relationship and operate two B767- 300BDSF aircraft as part of the Amazon Air network. And in March 2022, the company inked a new strategic agreement with DHL Aviation to provide air transportation services for DHL’s global network.
Cargojet’s fleet currently includes 41 Boeing 757 and 767 freighter aircraft. Similar to Air Canada, in response to the recent freight market downturn, Cargojet decided not to purchase eight used Boeing 777s and convert them to freighters last year. However, the company still has four 777-300 conversion slots with Israel Aircraft Industries and is waiting until market conditions improve.
The partnership with Great Vision HK and the provision of a new charter service highlights Cargojet’s ongoing commitment to strengthening trade links between Canada and China.
If you want to learn more about this partnership, please reach out to one of our trade professionals.