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UPS, SF Express create joint venture in China

The parcel carriers will focus initially on international delivery services from China to the United States and plan to expand their joint offerings to other destinations in the near future.

   UPS will establish a joint venture with the Chinese company SF Holding, the parent company of SF Express, to develop and provide international delivery services initially from China to the United States, with expansion plans for other destinations.
   “Through this agreement the parties will leverage their complementary networks, service portfolios, technologies and logistics expertise,” UPS said in a statement.
    According to the Atlanta, Ga.-based parcel giant, 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.”
   “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.”
   SF has an extensive network in China “encompassing more than 13,000 service points in the world’s largest and fastest growing package delivery market,” UPS said.
   The joint venture is still subject to regulatory approval.

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Chris Dupin

Chris Dupin has written about trade and transportation and other business subjects for a variety of publications before joining American Shipper and Freightwaves.