On the evening of September 21, the General Office of the State Council issued the Opinions on Accelerating the Development of New Consumption with New Business Types and Models, which mentioned that it is necessary to accelerate the construction of an international delivery logistics service system, promote the construction of the international logistics supply chain as a whole, expand the international market, especially the business along the "the Belt and Road", and cultivate a number of world-class platform enterprises and logistics supply chain enterprises with global resource allocation capabilities.
Shao Zhonglin, former deputy secretary-general of China Express Association and an expert of the China Post Think Tank, told the Economic Observer that at present, the domestic express business volume has been very large, but the satisfaction of the international network is still not high, and the adaptability or supply capacity of express delivery capacity to international trade, especially the the Belt and Road region, needs to be improved.
Accelerating the construction of an international postal logistics service system is a policy direction that has been repeatedly emphasized recently. At the press conference held by the State Postal Administration on the same day, Ma Junsheng, the director of the State Postal Administration, pointed out that the next step in the development of the express delivery industry is to "enter the factory and go abroad". Here, "enter the factory and go abroad" refers to two projects launched by the State Postal Administration in early 2020, "enter the factory for express delivery" and "go abroad for express delivery", The express delivery overseas project will focus on the bottleneck issues such as uncontrollable key links in international logistics delivery, establish a global delivery logistics service system, and help enhance the overall competitiveness of the country.
This includes the establishment of a series of policies and standards, including promoting the formulation of relevant policy documents to promote the development of international postal logistics, expanding international service networks in multiple ways, strengthening the capacity building of international express aviation networks, and enhancing international operational capabilities and competitiveness; Develop a plan for the entry and exit facilities of mail and parcels, and optimize the layout of international mail exchange bureaus.
The policy also provides a direction for commercial companies to expand their business, and top express delivery companies are investing in the construction of the international market.
According to the 2020 mid year report, SF Express's international express delivery business includes multiple aspects such as international express delivery, international freight forwarding, e-commerce packages, international warehousing, and freight forwarding services, covering 71 countries overseas; YTO Express and YTO Express International (HK: 06123) mainly include international express delivery, international freight forwarding and other international businesses. During the reporting period, they reached strategic or business cooperation with 18 postal or express delivery companies located in 17 countries or regions to expand the local express delivery market; Shentong Express's international business mainly includes international small packages, international postal parcels, and overseas warehouses. Its international business services cover 35 countries and regions including the United States, Australia, Russia, the United Kingdom, Japan, and South Korea.
During this year's epidemic, China's express delivery ability to go abroad has been greatly tested, while also providing huge space. In the first half of this year, international express delivery business experienced significant growth. In the first half of the year, the volume and revenue of international express delivery business completed 760 million items and 46.1 billion yuan, respectively, with year-on-year growth of 20.9% and 36.1%. According to the statistics of the National Postal Administration, cross-border express delivery is mainly concentrated in Guangdong, Zhejiang, and Shanghai, accounting for over 80% of the total, with Guangdong cross-border express delivery increasing by 34.4%. In the first half of the year, there was a significant increase in exports to major countries such as the United States and Japan. In international mail (express) imports, Asian imports are increasing by 21.9%, with Japan and South Korea being the main drivers. At the same time, there is a trend of further expansion in the growth rate. In July and August, the volume of international cross-border postal services increased by 32.2% and 35.5%, respectively.
Stimulated by the export of epidemic prevention materials, major express delivery companies have also seen a significant increase in their international business. In the first half of 2020, SF Express International's business increased by 141.71% year-on-year, while YTO Express International's net profit attributable to shareholders increased by 1700% year-on-year.