China gives go ahead to 3 more express providers

China’s domestic parcel delivery sector is looking to grow dramatically following the approval of three new foreign operators with the aim of raising the service bar amongst China’s vast and highly fragmented express parcel delivery market.


China gives go ahead to 3 more express providers


China’s domestic parcel delivery sector is looking to grow dramatically following the approval of three new foreign operators with the aim of raising the service bar amongst China’s vast and highly fragmented express parcel delivery market. At the end of 2014, China’s State Post Bureau approved Yamato (China) Transport Co Ltd, the China unit of Yamato Holdings Co Ltd, OCS Overseas Courier Service (Shanghai) Co Ltd and Kerry Logistics Co to begin offering domestic express delivery services. The three join FedEx and UPS who were both given the green light to operate in 2012, although to limited cities. In this recent expansion FedEx also won approval to operate in 20 more cities for a total of 68 cities.

 

The number of domestic express deliveries in China increased 52 per cent year-on-year to 14 billion in 2014 according to Shanghai’s National Business Daily. This number is forecast to increase 40 per cent to 19.6 billion in 2015 with 30 per cent revenue growth for providers.