UPS has announced that it will join with one of the leading courier delivery services in China to develop and provide international delivery services initially from China to the U.S., but with expansion plans for other destinations.
The joint venture, subject to regulatory approval, between UPS and SF Holding, parent firm of Guangdong-based SF Express, will leverage the companies' netwroks and supply chain expertise, UPS said in a May 25 statement.
UPS called SF “a market leader in express delivery in China, with extensive China-wide network coverage, comprehensive service capabilities, and the highest brand recognition in the Chinese small package market.”
“This joint venture will support products that provide competitive benefits to our Chinese customers who trade or seek to trade internationally,” said Ross McCullough, President of UPS Asia Pacific. “Our combined efforts will result in new logistics products and services to simplify and accelerate B2B and B2C customers’ cross-border trade.”
UPS said the joint offerings will combine the strengths of SF’s extensive Chinese network with UPS’s globally integrated network with coverage between more than 220 countries.
“China is leading the world in terms of e-commerce market size, growth, penetration, and mobile business usage,” said Alan Wong, SF group vice president. “Coupled with a rapidly growing and internet-savvy consumer base, it’s imperative that SF and UPS collaborate to revolutionize the logistics sector.”
SF Express was established in 1993 and in 2012 it set up a U.S. service center in South San Francisco. It offers parcel delivery to all over Mainland China with more than 13,000 service points and approximately 15,000 operating vehicles. It also runs an air-cargo operation with 36 aircraft that provide service across China.
According to SF Express, it has been “aggressively expanding its worldwide express services” to where it now provides parcel delivery services in over 200 countries and regions as well as international express services for over 50 countries and regions, including the United States, Russia, Japan, South Korea, Singapore, Malaysia, Australia, New Zealand, Canada, Brazil, and the European Union.