China parcel delivery SF express

China Parcel Delivery 108.3 Billion in 2021

China’s parcel delivery volume reached 108.3 billion pieces in 2021, up 29.9 percent year on year, accounting for more than half of the world’s parcels, according to the China State Post Bureau. After a long journey from Shenzhen to Los Angeles, a piece of parcel delivery on the plane, even across the Pacific Ocean, can achieve the next day.

The parcel delivery industry is not only covered by production, distribution, circulation and consumption, but it also connects the first, second and third industries. What kind of vitality has the booming parcel industry injected into the economic development? What are the development opportunities of the post industry?

China parcel delivery investment

There will be more opportunities from the parcel delivery industry

At about 12 o ‘clock on December 29, 2021, the aircraft “Certificate C-560” landed smoothly on the runway, leaving the first tire marks of the aircraft. This means that after four years of construction, Huahu Airport in Ezhou city, Hubei Province will start its verification flight, which is one step closer to formal operation.

Ezhou Huahu Airport is jointly funded by SF Express group and Hubei Province with a total investment of 32.063 billion yuan. Among them, only 15.857 billion yuan was invested in the airport project, 11.529 billion yuan in the transfer center project and 3.752 billion yuan in the SF Airlines base project.

As the first professional freight airport in China, Ezhou Huahu Airport is also the first airport deeply branded with the mark of “express, delivery”. It is a worthy “major project” in China’s delivery industry in recent years, and it is the first time that Chinese delivery enterprises extend their investment field to airports.

All this, from the rapid development of the delivery industry, from the consumer’s high requirements for time. With Ezhou as the center, the 1.5-hour flight can cover 80 percent of the country’s population, and it can reach major domestic airports one night and major international airports the next day.

“After Ezhou Huahu Airport is put into operation in June 2022, SF Express Airlines will form an aviation network with Huahu Airport as the core hub and Beijing, Shenzhen and Hangzhou as regional hubs.” According to SF Express Airlines, the annual cargo handling capacity of Ezhou Huahu Airport is expected to reach 3.3 million tons by 2030.

SF Expresss Airlines is striding forward, and other parcel delivery companies are also accelerating. By the end of 2021, the number of delivery cargo planes exceeded 130, Jiangsu Jingdong Cargo Airlines was approved for construction, and there were more than 1,500 express routes for high-speed rail transport.

If we say that parcel delivery companies’ efforts in freight and aviation represent investment opportunities within the industry, the story of Zhongke Weizhi symbolizes the new opportunities that parcel delivery brings to related industries.

On October 26, 2021, Zhongke Weizhi Intelligent Manufacturing Technology Jiangsu Co., LTD., founded only five years ago, successfully landed on the Science and Technology Innovation Board of the Shanghai Stock Exchange.

“The rise of the delivery industry has given the logistics equipment industry an opportunity for rapid development.” In the division of micro to enterprise head Li Gongyan said. In 2016, as the volume of delivery business continues to change, the growth of hundreds of millions of delivering shipments has been unable to rely on manual sorting, and the delivery industry is in urgent need of technological boost.

With huge market demand and huge price advantage, Zhongke Weizheng partners with China Post, SF Express, Shentong, Yuantong, Zhongtong, Baishi, and Yunda delivery companies. By the end of 2021, Zhongke Weizhi has delivered a total of 300 sets of cross-belt sorting systems.

Industry fusion

It will help reduce costs and increase efficiency in manufacturing

Ding Dong, Astrazeneca’s Wuxi supply base received new orders.

At the same time, Qian Lu, a supply chain worker at SF, also received the notification. She logs on to the inventory system, selects the order, and the processing is completed immediately. At the same time, in the elevated warehouse of Astrazeneca Wuxi supply base, the orange elevator automatically runs to the medicine storage location, takes out the ordered drugs with a tray, and places them on a conveyor belt, and sends them to the delivery area. It only takes 20 minutes from the arrival of the order to the successful delivery.

Such efficiency stems from the deep integration of manufacturing and parcel delivery industry. Astrazeneca Wuxi Supply Base has integrated SF supply chain into its order system, and entrusted the elevated warehouse to SF supply chain for overall management. “Astrazeneca used to deliver only two to three thousand boxes a day, but now, relying on advanced technology and embedded management mode, under the collaborative management of parcel delivery and manufacturing, the elevated warehouse can deliver up to 20,000 to 30,000 boxes a day, greatly improving efficiency.” SF supply chain said.

In Suning Logistics, the service of parcel delivery enterprises is more extended to the after-sale sector of manufacturing industry.

Deng Shuangcheng, a logistics worker in Suning, recently had a new position — installer. As long as the delivery of learning table, he is not only responsible for doorstep delivery, but also package installation.

“Suning Logistics is organizing Courier installation, maintenance and other training, fully participate in the product after-sales service.” Wuxi Suning logistics general manager Dou Yao said.

More and more cases of “parcel delivery” show that delivery enterprises are not limited to simply providing product delivery services, but try to embed facilities, systems and services into manufacturing enterprises’ production, sales and after-sales sectors, becoming an integral part of the manufacturing production and circulation process.

“The integration of the parcel delivery and manufacturing industries will help manufacturers focus more on core sections such as design, research and development and production, improve logistics efficiency, reduce costs and increase efficiency.” At the same time, cooperation with manufacturing companies can also help parcel delivery companies improve their integrated supply chain service capabilities and speed up their transformation into integrated parcel delivery and logistics operators, said Zhao Xiaomin, deputy director of the Special committee for postal and express delivery under the Shanghai Transportation Commission.

Data from the State Post Bureau show that in 2021, “parcel delivery into factories” achieved a new breakthrough, with 1,908 delivery service manufacturing projects with business revenue exceeding million yuan.


Connect the “last mile” of direct arrivals

According to Regional Comprehensive Economic Partnership (RCEP), customs clearance time for fresh goods such as seafood, fruit and vegetables has been reduced to less than six hours. As the head of the supply chain of the Southeast Asia management center of Zhongtong International delivery, Ren Jiabin’s task is to make the Burmese green crabs to achieve in China in two days.

In Myanmar, Zhongtong couriers are both package workers and purchasers. Every morning, couriers go to suppliers’ crab ponds to pick up green crabs weighing between 400g and 500g and pack and sort them. As night falls, the crabs are transferred to their distribution center and ready to take the charter flight to China. The next day, the crabs will be transported to China Kunming Changshui Airport and Guangzhou Baiyun Airport before being distributed to major supermarkets in China.

“The eve of the Spring Festival is the peak season for Burmese green crab meat, which is also the peak trading season.” Ren jiabin said that, thanks to fast transportation and professional cold chain equipment, about 5 tons of Burmese blue crabs are delivered fresh to consumers through Zhongtong’s international supply very day. In the future, the product category will be expanded to coconut, durian, longan and other Southeast Asian quality agricultural products.

Cross-border express delivery makes it more convenient to “buy from the world” and “sell to the world”.

Cainiao network Technology Co., LTD. ‘s 7 world distribution centers in Belgium Liege, Madrid, Paris, Bremen, Rome, Hungary, and Moscow will be officially put into operation at the beginning of “Double 11” in 2021. Cainiao has also flown more than 300 charter flights with an estimated cargo capacity of over 30,000 tons, helping Chinese cross-border merchants deliver parcels to overseas.

In Southeast Asia, with the establishment of the direct distribution network of Chinese parcel delivery companies, the “last mile” delivery problem, which is the biggest concern of cross-border merchants, also has a new solution.

“To prepare for Double 11 Day, we have temporarily increased the number of employees at the Bangkok distribution center by 2,000 and reserved more than 500 vehicles.” According to Liu Qianli, Thai brand manager of Jitu Express International, the number of its packages in Thailand during Double Day in 2021, with many of them coming from Chinese merchants.

Up to now, The delivery service of Jitu expresss international has covered Indonesia, Vietnam, Malaysia, Thailand, the Philippines and other countries. Zhongtong International has opened more than 120 first-level outlets in Vietnam, with a service coverage rate of 95%. In Cambodia, Zhongtong International has opened nearly 150 first-level outlets and second-level outlets, with about 500 couriers.

In recent years, China’s parcel delivery enterprises have accelerated their overseas layout, and have built 240 overseas distribution centers with an area of nearly 2 million square meters.

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