From AI to drones, firms deliver industry of future

Overseas expansion

In recent years, many leading domestic express delivery companies have decided to expand overseas. Part of the objective was to replicate China's successful experience in developing countries.

ZTO Express' Yang said his company had transplanted a model similar to the one in China in some African nations and Cambodia. "Having the electronic delivery waybills with a barcode was a major shift for them. Machine recognition and the corresponding automated sorting only become possible when handwritten waybills are not in use anymore," he said.

Courier company J&T Express has also been pushing its presence in Southeast Asia, the Middle East, North Africa, and Latin America. Its express network now covers 13 countries.

In Southeast Asia, the company has maintained the top market share in the express delivery sector for five consecutive years. In the second quarter of this year, it reported year-on-year growth of nearly 66 percent in parcel volume, with a daily average parcel volume of 18.5 million. In emerging markets, including the Middle East, North Africa, and South America, parcel volume increased by 23.7 percent year-on-year to 89.4 million daily.

Meanwhile, YTO Express has opened more than 150 airfreight routes worldwide, and established overseas end-to-end delivery capabilities in more than 10 countries and regions.

In June 2024, the company joined hands with Kazakhstan's national postal service to launch cross-border express services between the countries. They also established a joint venture to start building a parcel-sorting center in Almaty.

This facility will not only serve as an overseas warehouse for YTO to launch into the Central Asian market, but also develop into a trade center integrating functions, such as bonded warehousing, exhibitions, and commodity trading, said the company.

Another landmark for YTO is a cargo airport in Jiaxing city, Zhejiang province, positioned as a global aviation logistics hub, which will begin operations this year.

Jiang Ze, director of media affairs at the company, said the project covers 1 square kilometers, and will integrate airfreight and intelligent warehousing. "The airport will make sure that Chinese goods reach Europe and the United States in a little more than 10 hours, supporting the realization of YTO's vision of buying and selling globally," Jiang said.

Yunda Express is also helping cross-border e-commerce enterprises establish international logistics in important overseas markets, providing services such as warehouse management and system development.

Yunda, for example, has achieved a single express waybill from China to South Korea. The company has also established direct service networks in Seoul, Incheon, and Busan, capable of stocking and moving 300,000 parcels a day, said Guo Pengcheng, the company's head of media affairs.

"Chinese products enter Yunda's overseas warehouse in South Korea in advance, which allows buyers to get their parcels within two to three days after they place orders," Guo said.

The courier industry sees the upgrade from express operators to supply chain integrators as the next major growth point.

In June, YTO's international supply chain reached a cooperation agreement on cross-border supply chain service with Chinese tech company Xiaomi Group, becoming its supply chain logistics service provider.

Under the agreement, YTO will provide one-stop, end-to-end logistics supply chain services for Xiaomi electronic components exported to the South Asian market.

zhouwenting@chinadaily.com.cn