Chinese technology group Xiaomi has signed a collaboration agreement with COSCO Shipping Lines to ensure sufficient shipping capacity.
Amid the well-documented crunch in container and slot supplies, Xiaomi has seen exponential growth in global demand for its smartphones. With the growth of Xiaomi’s international business, the company has also raised its expectations for its shipping and logistics providers, requiring more reliable services.
Xiaomi and COSCON will work together on port warehousing services and regional logistics and explore co-operation in digitalisation and supply chain management. Xiaomi said that its co-operation with COSCON will accelerate the flow of goods, as the inclusion of door-to-door services will enhance the efficiency of international logistics services.
In the third quarter of 2020, Xiaomi’s smartphone shipments to western Europe surged by 107%, taking its market share in Western Europe to 13.3%. That put the company in the three largest smartphone suppliers in the region alongside Apple and Huawei. Xiaomi is also the third largest smartphone player in South America, the Middle East and Africa.
Rising Transpacific rates have caused a shortage of containers, as the lack of backhaul cargoes from North America has slowed the return of empty boxes to Asia. This has had a ripple effect on all other trade lanes.
Martina Li
Asia Correspondent
