Chinese Ministry of Commerce approves UPS-SF Holding joint venture

The parcel carriers have been approved to begin international delivery services from China to the United States with a new product offering that provides full visibility and transit time reliability.    UPS and its subsidiary SF Express have been approved by China’s Ministry of Commerce (MOFCOM) to move forward with its planned joint venture in international delivery services from China to the U.S. 
   The joint venture was first announced in May but is a continuation of UPS and SF’s collaboration that began in 2015, when UPS Worldwide Express service was made available at SF’s Heike retail stores in Shanghai and Shenzhen, the company said in a statement.
   “We’re delighted to help the many customers in China who will now be in a position to trade more easily across borders and better compete on the global stage thanks to product offerings from the UPS and SF joint venture,” said Ross McCullough, president of UPS Asia Pacific. “UPS has an aggressive multi-year growth plan in China. Aligning our two networks will increase our market presence by connecting China’s consumers and manufacturers to the U.S. and around the world with logistics solutions that strengthen cross-border B2B and B2C capabilities. This JV is highly symbolic of UPS’s confidence in long-term growth opportunities in China.”  
   UPS stated that customers can now utilize its new Global Reach Plus service for “less urgent shipments” which still gives customers full visibility and a transit reliability of five to seven days.
   “The establishment of this joint venture boosts global expansion of Chinese enterprises beyond local borders,” said Alan Wong, Group Vice President of SF. “SF and UPS are able to maximize the strengths of both companies to continuously innovate and create more competitive products that deliver strong value for customers.”
   While initially focused on the China to U.S. lane, the joint venture plans to expand globally, according to UPS.