Parcel deliveries hit 50 billion in 1st half

China is estimated to have handled 50 billion parcels from January to June, a year-on-year increase of 3.6 percent, showing the strong resilience of the nation's parcel delivery sector amid the headwinds of the COVID-19 pandemic, said the State Post Bureau of China.

The sector's revenue in the first six months is estimated to have reached nearly 500 billion yuan ($74.6 billion), according to a report released on Thursday by the bureau, which is the industry's regulator.

"In the first half of the year, the industry overcame the impact of the pandemic and other factors, and the scale of parcel delivery has rebounded rapidly after a brief decline, achieving positive growth and showing good development resilience," Wang Yuehan, an associate researcher with the bureau's development and research center, said at a news conference on Thursday.

"The average daily business volume has recovered to more than 300 million items, exceeding the level of the same period last year," Wang added.

The festival economy－such as the June 18 online shopping festival, when online shopping giants offer bargains over the two-and-a-half weeks leading up to that day－and e-commerce promotions have boosted the industry's recovery.

Thanks to online promotional activities, the volume of express business has seen a rapid recovery, with the highest daily business volume exceeding 400 million items, Wang said.

The industry also saw a boom in sales of agricultural produce. With the sector's campaign to expand parcel delivery service in rural areas, more agricultural products can now be delivered to urban areas. As a result, the number of parcels containing agricultural goods has been growing steadily.

Wang also said the nation's central region was a significant driver of the industry's development in the first half of the year, with growth in most central areas exceeding the national average.

Noting that sporadic COVID-19 outbreaks emerged in some regions of China in the first six months of 2022, especially in Shanghai and Beijing, Wang said that "resumption of the parcel delivery sector has faced great pressure".

She also said that although the sector's cross-border business, affected by the pandemic and rising transportation costs, saw a decline in the first half of the year, the industry's ability to build global networks, construct international hubs and improve local delivery capabilities in overseas markets improved.

In addition, the number of countries and regions reached by Chinese companies' international delivery services has increased, Wang said.

In May, J&T Express, a fast-growing company established in 2015, launched express services in Brazil, a major step in the company's efforts to expand logistics services in the Latin American market. The company began offering services in Mexico in February.

Charles Hou, the company's vice-president, said, "The success of the networks launched in Mexico and Brazil within a short time frame further demonstrates the benefits of the regional sponsorship model in our global expansion.

"It is also important for the company to continue to further cultivate emerging markets and expand its strategic global footprint," he added.