Couriers’ business soars with e-commerce’s rise
April 30, 2014 Category Express delivery, Logistics
Domestic express delivery services are getting a business boost from the explosive growth of e-commerce and using that revenue stream to expand their cargo fleets, but they are also watching out for international logistics firms moving further into the Chinese market. Shenzhen-based SF Express (Group) Co, Shanghai-based YTO Express Co and state-owned China Postal Airlines are buying and leasing more aircraft, renting warehouse space at airports and expanding their delivery options to meet growing competition from global delivery services. Li Sheng, President of SF Airlines, the air service branch of leading package service SF Express, said the company is buying and chartering more cargo freighters to offer better services to its clients. It acquired four cargo aircraft from Boeing last year, taking its fleet to 33 planes – 14 owned and 19 chartered. It plans to buy another 11 aircraft by the end of 2015. It already has 240,000 employees, more than 11,000 delivery vehicles and 7,600 service points around the world. Hou Hanping, Professor of Logistics Management at Beijing Jiaotong University, noted that many factors are affecting the industry: an expanding economy, the use of information technology and the rising urbanization rate in China. Those factors mean more segmented and sophisticated markets for delivery services. Rising e-commerce lifted China’s express shipping market by 37% to CNY144 billion last year, according to the China e-Business Research Center based in Hangzhou, Zhejiang province, the China Daily reports.
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