UPS to deliver more parcels in China
January 30, 2014 Category Express delivery, Logistics
United Parcel Service (UPS) is looking to keep an upper hand in the Chinese market by adding 14 inner-city express services next year. UPS began domestic courier services in 2012, when it was granted seven licenses by the State Post Bureau of China. It expanded to 19 first- and second-tier cities last year and expects to reach 33 cities in 2014. UPS CEO Scott Davis said that China’s middle class will grow significantly over the next 20 years and more delivery services will be needed, so the company wants to expand its network in the country. China is now the world’s third-largest market for express services behind the United States and Japan. Last year, 8,200 express companies were operating in China, compared with 5,327 in 2010. The average number of pieces of mail and packages delivered amounted to 143 million a day in 2012, according to the Beijing-based China Federation of Logistics and Purchasing (CFLP). UPS owns and operates two large hubs in the country. In Guangdong province, its Shenzhen Intra-Asia Hub provides services for customers doing business with emerging Asian economies, while the company’s Shanghai international hub links Asia to the rest of the world. It also set up three regional hubs in Qingdao, Chengdu and Zhengzhou in the past three years. UPS has 399,000 employees across the world, with 6,170 in China. The company operates 208 weekly flights connecting China to the U.S., Europe and destinations across Asia. UPS also established a specialist facility with 22,000 square meters of storage space in Hangzhou to handle shipments of medical products. “There are a lot of areas that we’re looking at and we’ll invest in them as time goes on,” said Richard Loi, UPS China President in China.
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