China approves three new foreign courier firms

Monday, 5 January 2015 00:00 - - {{hitsCtrl.values.hits}}

Reuters: China has permitted three new overseas courier firms to offer domestic delivery services, state news agency Xinhua said on Thursday, as part of government pledges to further open up the fast-growing market.

The State Post Bureau has 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 Ltd, Xinhua said. The government said in September it would ease restrictions on foreign couriers seeking to deliver packages nationwide. Express parcel delivery is booming in China, thanks to a surge in e-commerce. The Chinese market, however, is highly fragmented and competition is stiff. There are currently more than 35,000 express delivery companies operating in the country. Some can ship packages for hundreds of miles as quickly as within the same day, and for as little as 2 yuan (32 US cents), compared to the U.S. Postal Service, which on average charges at least $10 for a domestic delivery. FedEx Corp and United Parcel Service Inc already operate express parcel delivery services in China.