With fuel costs continually on the rise — costs have been driven up by 16% since fuel prices were raised in late June — private couriers in China are struggling to swallow the losses.
Zhu Genfu, general manager of the ZTO Express in the Shanghai region said small private delivery companies in the country, estimated at 100,000 or so, were offering unbelievably low prices to compete for business opportunities in one of the world’s largest markets.
Major international express are intent on grabbing a greater share of the fast developing Chinese delivery market.
Chinese couriers still have their competitive edge in that they have the access to the more remote areas within the country with stronger networks, said Chu Xuejian, professor at the Modern Logistics Research Center, Shanghai University.
But analysts say it is still important for domestic private couriers in China to improve their service and technology and expand the scale in order to sustain the challenge. Much, much more HERE.
Source: China Daily