Chinese express increases volumes in July

Chinese air express carriers saw increased parcel volume in July, continuing a trend of growth driven primarily by rising e-commerce shipments. China’s parcel volume for July totaled 9.6 billion, an 8% year-over-year increase, averaging about 311 million parcels per day for the month, China’s State Post Bureau reported. Meanwhile, the gross merchandise value of online physical goods increased 10% YoY, accelerating a trend that began with the onset of COVID-19, as e-commerce became a more viable option for businesses over brick-and-mortar locations. [caption id="attachment_73441" align="alignright" width="300"] Photo/SF Express[/caption] SF Express, China’s largest air express operator, saw slight growth as its market share increased by 0.1 percentage points YoY to 9.5%, and parcel volume grew 8.9% YoY to 920 million packages, according to JP Morgan data. Despite being the country’s largest operator, SF’s growth was less than Shanghai-based STO Express, which gained market share of 2.4 percentage points to 12.4%. YoY parcel volume growth accelerated from 31% to 34% month over month, bringing the carrier’s volume to 1.2 billion parcels in July. YTO Express, also based in Shanghai, saw its parcel volume grow 7.8% YoY to 1.51 billion. Meanwhile, the carrier’s market share was stable at 15.6%. Yunda, the only carrier to underperform according to JP Morgan, still saw a 2.1% YoY growth in parcel volumes to 1.59 billion, higher than any other carrier. However, Yunda lost market share by 0.9 percentage points, falling to 16.4%, yet still ending the month with a higher marketshare than any other carrier. Express shipments take off Overall, express shipments in the Asia-Pacific region have increased dramatically since the pandemic and its ongoing recovery period. SF Express, for example, saw express air and ground transport increase 68% YoY in 2020 and 30% YoY in 2021, according to Air Cargo World sister publication Cargo Facts Consulting . Chinese express carriers are experiencing more rapid growth than U.S. domestic air express , which grew 12% YoY in 2020 and 5.5% YoY in 2021. Meanwhile, international air express increased 9% in 2020 and 11% in 2021, Cargo Facts Consulting reported. The rise of e-commerce and the surge in market demand have led to China’s annual domestic air cargo tonnage increasing steadily for years. Cargo tonnage grew an average of 3.7% YoY from 2014 to 2020, in spite of the pandemic and COVID-related lockdowns in China . Express carriers may be experiencing growth internationally, but capacity challenges and supply chain shortages may mean that growth is short-lived, according to CFC . Air express shipment volumes are expected to grow faster than overall air cargo internationally, though that growth may be moderate at a rate of 5.4% per year between 2022 and 2027, CFC forecasts. Meanwhile, airports in the Asia-Pacific region saw reduced cargo traffic in July, indicating an ongoing recovery from the pandemic. Asian airports reported an average of 22% lower cargo volumes YoY across selected airports, an Air Cargo World analysis found. Shanghai Pudong International Airport (PVG) fell lower than other airports in the region, with a 33% drop in cargo YoY, seeing only 107,142 tonnes in July compared with 160,477 tonnes in July 2021. Volumes at the airport have grown around 2% MoM this year, indicating slow but steady recovery. Join Air Cargo World for our next webinar, “Forward Thinking: Best practices for freight forwarder success,” on Tuesday, Sept. 13, at 11 a.m. ET. Click here for more information and to register.

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