UPS links up with China’s SF Express

UPS and SF Holding, the parent company of SF Express, are to establish a joint venture and collaborate to develop and provide international delivery services, initially from China to the US, with expansion plans for other destinations.
The joint venture is subject to regulatory approval.
US express and logistics giant UPS is linking up with a market leader in express delivery in China.
Ross McCullough, president of UPS Asia Pacific, said: “UPS is excited to form a joint venture with SF. This joint venture will support products that provide competitive benefits to our Chinese customers who trade or seek to trade internationally.
“Our combined efforts will result in new logistics products and services to simplify and accelerate B2B and B2C customers’ cross-border trade.”
The joint venture combines the strengths of SF’s extensive Chinese network, encompassing more than 13,000 service points in the world’s largest and fastest growing package delivery market, with UPS’ integrated network with coverage between more than 220 countries.
A joint statement said that alignment of the partners’ shipping networks “will provide customers with greater coverage, additional routing options, increased capacity, and more choice in transit times and service options”. 
The joint venture will focus initially on supporting offerings on the China-to-US lane, with planned expansion to markets in the rest of the world.
Alan Wong, group vice president of SF, said: “China is leading the world in terms of e-commerce market size, growth, penetration and mobile business usage. Coupled with a rapidly growing and internet-savvy consumer base, it’s imperative that SF and UPS collaborate to revolutionize the logistics sector. 
“Together, we aim to bring greater competitive advantages to our customers in China, to succeed globally.”
Both companies will utilise their own assets to “enhance operational effectiveness and efficiency while aligning business processes in order to provide seamless customer care for all parties shipping out of China”.

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