Saudia Cargo signs MoU with China Cargo Airlines to broaden cooperation

As the turmoil across intercontinental trade agreements continues, two companies are seeking to capitalize on any possible opportunities that might remain for cooperation. Saudia Cargo, the freight-only arm of Saudi Arabia’s national carrier Saudia, and China Cargo Airlines signed a Memorandum of Understanding at the World Cargo Symposium held in Dubai between 15 and 17 April 2025 to expand cooperation between the two companies to boost trade between the Kingdom of Saudi Arabia and China.

As reported by Payload Asia, Saudia Cargo and China Cargo Airlines (the latter being a joint venture between China Eastern Airlines and China Ocean Shipping), have signed the MoU to forge a strategic alliance to enhance trade links and logistics connections between Saudi Arabia and China.

The parties explained that their new partnership aims to “optimize export operations, provide advanced logistics services, and capitalize on growing global market demands, aligning these with Saudi Vision 2030 and China’s Belt and Road Initiative, ensuring resilient supply chains in today’s interconnected world.”

Minh K Tran / ShutterstockThe newly-penned MoU is set to establish a framework for enhanced collaboration, with both parties committed to strengthening interline cooperation, building upon existing and future SPA agreements. This includes joint marketing and promotional activities, the execution of joint marketing strategies, and a focus on harmonizing cargo service operations, pricing, and the provision of specialized cargo handling for sensitive goods.

“This MoU with China Cargo Airlines represents a significant milestone for Saudia Cargo. We are setting our sights on elevating shipping capabilities and broadening our export footprint in the Chinese markets,” said Loay Mashabi, CEO and Managing Director of Saudia Cargo. “By optimizing export operations and delivering advanced logistic services that cater to evolving global market demands, we are confident that this partnership will not only strengthen our position as a leading global cargo carrier but also contribute significantly to the realization of Vision 2030.”

“We are delighted to embark on this strategic journey with Saudia Cargo, added Wang Jianmin, President of China Cargo Airlines. “We firmly believe that by uniting our strengths and resources, we can generate substantial value for our customers, enhance trade connectivity between Asia and the Middle East, and play a key role in the success of both Saudi Vision 2030 and the Belt and Road Initiative. To ensure the effective execution of this MoU, we will establish an executive team comprised of representatives from both organizations, fostering seamless collaboration and driving impactful results.”

Minh K Tran / ShutterstockSaudia Cargo currently operates a fleet of four Boeing 747-400 freighters (all wet-leased from Air Atlanta Icelandic), and four wholly-owned Boeing 777- 200Fs. China Cargo Airlines, meanwhile, operates a fleet of 15 Boeing 777-200Fs from the company’s base at Shanghai-Hongqiao International Airport (SHA).

Building on current growth

The new agreement is intended to expand on the recent success of Saudia Cargo’s “Landing in China in 24” campaign, launched in 2024. According to Payload Asia, the program generated significant engagement from the company’s key partners and underscored the growing demand for efficient logistics solutions connecting the Kingdom with key Chinese markets. China stands as Saudi Arabia’s primary merchandise trading partner, with exports reaching 16.1 billion SAR in 2023, representing 17% of the Kingdom’s total exports.

Omid Behzadpour / ShutterstockAdditionally, in April 2024, Saudia Cargo embraced the significance of China as a crucial market for its operations by expanding operations significantly to Shenzhen to meet the growing demand for air cargo services in the region. The airline began operating two weekly flights between the countries, enabling Saudia Cargo to “facilitate the seamless transportation of goods between Shenzhen and Riyadh, with Riyadh being identified as the most lucrative international market for Chinese businesses,” said Saudia Cargo at the time.  

Vytautas Kielaitis / Shutterstock“The introduction of regular flights to Riyadh presents significant opportunities for Chinese businesses, particularly in the e-commerce sector,” said the Company’s CEO. “Shenzhen is widely recognized as a hub for e-commerce, hosting major players such as Alibaba, Temu, and TikTok. By better servicing key clients, Saudia Cargo aims to cater to the increasing demand for air cargo services, especially for e-commerce,” he added.

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