UPS And FedEx Win Big With Access To Chinese Express Delivery Market - Forbes
China has approved the domestic business licenses of US-based international logistics companies FedEx and UPS. The two now hope to take a bigger bite out of the fast expanding Chinese delivery market.
Until now, foreign firms like FedEx and UPS could deliver packages from abroad to destinations in China, but were excluded from domestic delivery i.e. packages sent between locations in China. The new regulation will cover domestic express parcels but will still exclude FedEx and UPS from competing in the mainland China domestic document/letter delivery market.
Volumes for express delivery are estimated to have grown by 60% last year up from 2.3 billion packages in 2010, half of which came from online shopping orders. China, thus, represents a huge business opportunity for international logistics companies like FedEx and UPS.
China has approved the domestic business licenses of US-based international logistics companies FedEx and UPS. The two now hope to take a bigger bite out of the fast expanding Chinese delivery market.
Until now, foreign firms like FedEx and UPS could deliver packages from abroad to destinations in China, but were excluded from domestic delivery i.e. packages sent between locations in China. The new regulation will cover domestic express parcels but will still exclude FedEx and UPS from competing in the mainland China domestic document/letter delivery market.
Volumes for express delivery are estimated to have grown by 60% last year up from 2.3 billion packages in 2010, half of which came from online shopping orders. China, thus, represents a huge business opportunity for international logistics companies like FedEx and UPS.
