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Boom year for express deliveries

China’s express delivery sector is expected to report a double-digit growth in parcel volume this year.The country is expected to see over 74 billion parcels in 2020, a growth of 18 percent year on year, said a report by the State Post Bureau.In 2019, express packages posted a 25.3 percent growth to 63.52 billion, increasing by over 10 billion pieces for two consecutive years.Courier firms handled 170 million parcels per day on average last year, jumping 25.3 percent from the same period in the previous year, with the daily maximum handled amount exceeding 540 million pieces.Despite the short-term shrinking business volumes during the Spring Festival holiday and the pandemic, the upbeat future outlook for the courier sector will not change, the report said.A recent report from Fitch Ratings expected China’s express-delivery sector to transition from a labor-intensive industry to a capital-and-technology intensive one, as key participants cut costs and improve efficiency through expansion and technology.
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