On 1 July, the State Post Bureau announced that over 80 billion parcels had been delivered across China during the first six months of this year. Also, the milestone was reached 59 days earlier than last year. The monthly average, up to 30 June, was 13 billion deliveries.
Back at the end of April, it was reported that the parcels shipped in China had reached 50 billion in 4 months, 32 days earlier than in 2023. Data from the China Federation of Logistics and Purchasing shows that the value of goods transported in the country reached 135.3 trillion RMB (14.72 trillion USD), growing 5.9% year-on-year (YoY). Deliveries in rural areas also improved this year, as e-commerce platforms started to compete for the market.
Indeed, e-commerce platforms remain the main driver of shipping. During the 618 shopping festival (between 20 May and 16 June), 13.77 billion packages were shipped and 13.53 billion deliveries were made. This marks a 20% YoY growth. This year, platforms such as Tmall and PDD all launched their 618 sales on 20 May, which meant the festival lasted a month. The Dragon Boat Festival and Children’s Day also took place during this period, pushing the number higher.
Notably, the amendments on Administrative Measures for Express Delivery Market which was passed last year, came into effect on 1 March this year. The rule changes mean that delivery drivers can get fined under 10,000 RMB (1,375.89 USD) or between 10,000 and 30,000 RMB (4,127.68 USD) for confirming delivery without a recipient’s consent, dropping off in collection boxes or stations without the recipient’s instruction or throwing and stepping on the parcels.
This has given the drivers who are already strapped for time even more pressure. Pricing competition is also steep. In 2023, the price per delivery dropped 4.1% to 9.15 RMB (1.26 USD). Delivery providers are now trying to diversify their business with services such as “instant deliveries” of groceries in under an hour and other “local lifestyle” services. It is worth watching how delivery companies do to weather the storm as e-commerce faces headwinds.
