UPS-SF Holding joint venture receives regulatory approval in China
In this article (5)
UPS and SF Holding, the parent company of SF Express, have announced the approval of their planned joint venture by China’s Ministry of Commerce (MOFCOM). The JV enables UPS and SF to collaborate on development and provision of international delivery services from, initially, China to the US and, in the future, to other trade lanes. The JV approval is a positive development for international trade and allows the two leading companies to leverage their complementary networks, service portfolios, technologies and logistics expertise.
UPS is one of the world’s largest express delivery companies and a leading global supply chain integrator. SF is a market leader in express delivery in China, with extensive China-wide network coverage, comprehensive service capabilities, and the highest brand recognition in the Chinese small package industry. The newly approved joint venture is a continuation of UPS and SF’s collaboration that began in 2015, when UPS Worldwide Express service was made available at SF’s Heike retail stores in Shanghai and Shenzhen.
“We’re delighted to help the many customers in China who will now be in a position to trade more easily across borders and better compete on the global stage thanks to product offerings from the UPS and SF joint venture,” said Ross McCullough, president of UPS Asia Pacific. “UPS has an aggressive multi-year growth plan in China. Aligning our two networks will increase our market presence by connecting China’s consumers and manufacturers to the US and around the world with logistics solutions that strengthen cross-border B2B and B2C capabilities. This JV is highly symbolic of UPS’s confidence in long-term growth opportunities in China.”
“The establishment of this joint venture boosts global expansion of Chinese enterprises beyond local borders,” said Alan Wong, group vice president of SF. “SF and UPS are able to maximise the strengths of both companies to continuously innovate and create more competitive products that deliver strong value for customers.”
The alignment of UPS’ and SF’s transportation networks provides customers with greater coverage, additional routing options, increased capacity, and more choice in transit times and service options.
“The establishment of this joint venture boosts global expansion of Chinese enterprises beyond local borders,”
With the joint venture approved, customers seeking an economical solution for less urgent shipments can opt for Global Reach Plus, the new joint venture deferred express product that features the full visibility and reliability of a premium express service. Customers are expected to gain:
- Time-in-Transit Reliability with 5-7 business days deliveries jointly powered by UPS & SF’s combined networks.
- End-to-End Visibility: Visibility from door-to-door using SF’s tracking tool, integrated with UPS’s industry-leading technologies.
- Single Point of Contact for customer service via SF; shipment pick-up by SF at the origin & delivery by UPS at the destination.
- Flexibility: Late order cut-off time for shipment pick-ups, and multiple delivery options including the use of UPS My Choice and UPS Access Point network.
The joint venture supports these highly competitive joint service offerings on the China-to-US lane, with planned expansion to markets in the rest of the world. Both companies can now utilize their own assets to boost operational effectiveness and efficiency for businesses while aligning business processes in order to provide seamless customer care for all parties shipping out of China.
Questions & Answers
Q.Which regulatory body approved the joint venture between UPS and SF Holding?
Which regulatory body approved the joint venture between UPS and SF Holding?
China’s Ministry of Commerce (MOFCOM) has granted approval for the joint venture. This allows UPS and SF to proceed with their planned collaboration on international delivery services.
Q.What is the initial focus of the international delivery services offered by the new joint venture?
What is the initial focus of the international delivery services offered by the new joint venture?
Initially, the joint venture will focus on providing international delivery services from China to the US. There are plans to expand these services to other trade lanes in the future.
Q.What is the name of the new deferred express product offered by the joint venture?
What is the name of the new deferred express product offered by the joint venture?
The new joint venture deferred express product is called Global Reach Plus. It offers an economical solution for less urgent shipments, featuring full visibility and the reliability of a premium express service.
Q.When did UPS and SF’s collaboration begin before this joint venture was approved?
When did UPS and SF’s collaboration begin before this joint venture was approved?
The collaboration between UPS and SF began in 2015. At that time, UPS Worldwide Express service became available through SF’s Heike retail stores in Shanghai and Shenzhen.
Reader pulse
Is this joint venture a major shift for China-US logistics?
15,918 votes so far