FedEx and UPS have received approval to operate limited domestic service in China, giving the rivals access to a burgeoning multibillion-dollar market amid slagging global business.
China’s State Post Bureau this week gave the parcel giants the go-ahead to provide parcel delivery to eight cities total, but held back on opening the letter delivery market to the carriers. China Postal Express & Logistics Co. estimates the domestic document and package market will likely grow 20 percent annually, according to The Wall Street Journal.
FedEx can now provide domestic service to Shanghai, Guangzhou, Shenzhen, Hangzhou, Tianjin, Dalian, Zhengzhou and Chengdu; while UPS can deliver domestic packages to Shanghai, Guangzhou, Shenzhen, Tianjin and Xi'an. Both companies said it was too soon to determine when services would begin.
FedEx currently provides domestic service to about 400 Chinese cities through a joint venture with Yangtze River Express, an air carrier, and various agents, said spokesman Shea Leordeanu. UPS, which like its rival has provided international service to China for years, doesn’t have a domestic network through joint ventures, said company spokesman Kara Ross.