China Eastern’s Decade of Fresh Express: Ten Innovations Driving a New Chapter in China-Chile Trade

Summary

On 20 November 2024, China Eastern Airlines celebrated the tenth anniversary of its Fresh Express route in Santiago, Chile. The first charter flight laden with Chilean cherries departed Santiago and, after a 25-hour flight, arrived at Shanghai Pudong. Since its launch in 2013, China Eastern has expanded from an initial two flights to 350 charter flights in 2024, importing more than 50,000 tonnes of agricultural products including Chilean cherries and salmon, with a total value exceeding US$1 billion.

China Eastern's fresh produce network now reaches over 80% of China's consumer population, and it has developed a range of cold-chain technologies such as temperature-controlled equipment and waterproof pallets. Former Chilean President Eduardo Frei stated that China Eastern has helped bring Chilean agricultural products into the Chinese market, with over 90% of Chilean cherries sold to China each year, and China Eastern handling the primary transport. China Eastern also plans to expand Chilean agricultural products into Southeast Asian markets and is considering cooperation with airlines such as Latam.

Commentary

For New Zealand small and medium enterprise owners, the case of China Eastern's decade-long Fresh Express reveals several key business insights. Firstly, China Eastern's 'origin direct' model connects directly with high-quality Chilean exporters – a vertical integration strategy that effectively reduces supply chain costs and enhances bargaining power. New Zealand exporters could adopt a similar model by establishing long-term charter agreements with airlines, especially for high-value perishables like kiwifruit and red meat.

Secondly, China Eastern's technological innovations (temperature control monitoring, waterproof pallets) ensure product quality – crucial for New Zealand's long-distance transport to China. Businesses should consider investing in cold-chain logistics upgrades. Thirdly, China Eastern leveraged international meetings such as APEC and G20 held in South America to deepen cooperation, highlighting the trade driving force of geopolitical windows.

New Zealand companies should closely monitor the follow-up negotiations of the NZ-China FTA upgrade and trade facilitation measures under the RCEP framework. Finally, China Eastern's plan to expand into Southeast Asia means New Zealand goods may face competition from Chilean products in the same market – differentiation and brand storytelling will become more important. In conclusion, the China Eastern case demonstrates that scaling and innovating in air logistics can significantly improve market penetration.

New Zealand businesses should assess the potential for co-operation with China Eastern or seek similar partners to reduce reliance on traditional sea freight.

Keywords: China Eastern, Fresh Express, Chilean cherries, air freight, cold chain logistics, China-Chile trade, market analysis, South American agricultural products, charter transport, trade innovation

Source: Sohu