May 26, 2017
United Parcel Service and SF Holding, the parent company of SF Express, today announced plans to establish a joint venture and collaborate to develop and provide international delivery services initially from China to the US, with expansion plans for other destinations.
Through this agreement the parties will leverage their complementary networks, service portfolios, technologies and logistics expertise.
The joint venture is subject to regulatory approval.
UPS is the world’s largest express delivery company and a leading global supply chain integrator. SF is 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.
“UPS is excited to form a joint venture with SF. 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.”
The joint services offerings combine the strengths of SF’s extensive Chinese network, encompassing more than 13,000 service points in the world’s largest and fastest growing package delivery market, with UPS’s market leading globally integrated network with coverage between more than 220 countries.
Alignment of the partners’ shipping networks will provide customers with greater coverage, additional routing options, increased capacity, and more choice in transit times and service options.
The joint venture will initially focus on supporting these highly competitive joint service offerings on the China-to-US lane, with planned expansion to markets in the rest of the world.
“China is leading the world in terms of e-commerce market size, growth, penetration and mobile business usage¹. Coupled with a rapidly growing and internet-savvy consumer base, it’s imperative that SF and UPS collaborate to revolutionize the logistics sector. Together, we aim to bring greater competitive advantages to our customers in China, to succeed globally,” said Alan Wong, Group VP of SF.
Read: UPS VP of Public Relations Steve Gaut told Logistics Management that there were multiple drivers for this endeavor.
The joint venture supports the creation of competitive synergies for UPS and SF through the combined scope and scale of both companies’ complementary networks. Both companies will utilize their own assets to enhance operational effectiveness and efficiency while aligning business processes in order to provide seamless customer care for all parties shipping out of China.
¹ China Eclipses the US to Become the World's Largest Retail Market
Related Article: Amazon Plans Air Cargo Services for China Retailers
Related China Trade White Papers
China Trade Operations: Trends and Advancements
While over 77% of companies are currently operating in China, the majority are unable to address the dynamic and complex trade environment - this Aberdeen Group report provides in-depth insights into the complexities of China trade operations. Download Now!
China and the World: New Frontiers, Fresh Connections
China's role in the global economy has gone from 11th largest to second, the country’s economy is now 60% that of the US, China’s relationship with the world is changing, this report sets out to examine these changes and what they mean for China and the rest of the world. Download Now!
The Keys to Effective China Trade Operations
China’s dominance as the world’s top country for sourcing hasn’t swayed under the pressures that have been the topic of discussion in the boardroom, on the campaign trail, around the dining room table, or during trade negotiations in nearly every country around the world. Download Now!
2016 Global Manufacturing Competitiveness Index
With the release of the 2016 Global Manufacturing Competitiveness Index (GMCI), Deloitte Touche Tohmatsu Limited (Deloitte Global) and the Council on Competitiveness (the Council) in the US build upon the GMCI research, with prior studies published in 2010 and 2013. Download Now!
U.S.-To-China B2c E-Commerce: Improving Logistics to Grow Trade
Merchants should carefully design their logistics strategy to promote the greatest efficiency and profits while addressing customers’ expectations and needs, based on factors such as their product mix, target geography, demographic segment, product price points, returns strategy, and more. Download Now!