Hanjin eyes bigger footing in the US fulfillment services market

Hanjin Logistics, an affiliate of South Korean airline-to-logistics conglomerate Hanjin Group, is ramping up efforts to improve its fulfillment services and attract more corporate customers seeking to enter the US market.

Earlier this month, CEO Noh Sam-seok and Emily Cho, president and chief marketing officer, traveled to the US for meetings at the company's local headquarters as they plan to expand the logistics firm's fulfillment business on the US east coast, according to the company on Friday.

The two executives visited the company's New Jersey business-to-business center and its Chicago center, and met with officials at the Chicago consulate and the regional office of the Korea Trade-Investment Promotion Agency to better understand local market trends. This visit aligns with the company’s plans to expand its fulfillment business on the East Coast.

Currently, according to Hanjin Logistics, the firm serves the entire US market through its Los Angeles fulfillment center, which was revamped last May to enhance its overall capacity by relocating its warehouses and changing its layout. The LA center, spanning 9,850 square meters, is where the company handles all of its last mile processes -- storing, picking and packing the products to deliver to customers' doorsteps across the US.

To raise efficiency at the center, Hanjin has introduced an autonomous robot, Locus, which assists pickers in locating items and transporting them to packers at an automated packing station. Staff then complete the wrapping and prepare shipments for distribution.

According to the company, exports of Korean cosmetic products to the US jumped 61 percent on-year in 2024, from $540.3 million to $870.3 million. Food exports also increased by 17 percent, from $630 million in 2023 to $736.8 million this year.

"Fulfillment services are crucial in the US market, especially for Korean SMEs. We anticipate our platform will help Korean brands and a range of companies targeting the US market,” said a company official. “Leveraging our logistics infrastructure and the trust we’ve built, we will solidify our role as a global logistics partner.”

Hanjin Logistics said it has supported small and medium-sized enterprises entering the US market through its global services -- Swoop, OneClick Global and Hoot-town.

To handle an increase in demand in the Americas due to nearshoring, Hanjin Logistics said it plans to establish a new office in Mexico by the end of the year. The company said the new branch will offer freight forwarding and trucking services as part of an integrated logistics network across North and South America.