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            october 16, 2019

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UPS, FedEx receive permission for wider delivery in more Chinese cities


American express delivery giant United Parcel Service (UPS) and FedEx have received permission for wider delivery in more Chinese cities - licenses they have been seeking since 2009.
"We now have 33 licenses," UPS spokeswoman Laura Lane told Reuters. "The government just approved them in May."
There are 14 licenses for cities including Beijing, When and Herein. "We're really looking at developing those capabilities in those 33 cities, expanding our investment."
Second in size to the US, the licences increase access to the China market that is growing 60 per cent a year and could be worth CNY280 billion (US$46 billion), according to the consultancy, Deloitte.
FedEx received 21 licences in May, returning its total to the 58 it held before the 2009 law, a spokesman told Reuters. Each allows business to consumer (B2C) deliveries within cities. Intra-city delivery licences are already held.
But UPS and FedEx face stiff competition in state-backed China Post and large, privately run rivals such as Shentong Express and SF Express, according to Shipping Gazette.

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