Logistics giants UPS and SF Holding on Friday announced a joint venture to provide international delivery service from China to the US and eventually include other destinations.
SF Holding, the parent company of SF Express, is China's largest delivery service; UPS is the world's largest express delivery company. The joint venture will combine SF's extensive Chinese network with UPS' global network across 220 countries and territories.
China is expected to be the largest express delivery market in the world by 2020, with revenue predicted at more than $100 billion.
UPS has been operating out of China since 1988, but US courier services like UPS and FedEx have had limited market share in China where local players dominate.
UPS said it moves about 19 million packages a day. It does not break out sales figures or activity in China, but the company reported in its first-quarter earnings that average daily export volumes in the Asia-Pacific region were up by more than 10 percent.
International revenue increased 4.9 percent year-on-year to $3.1 billion.
Logistics giants UPS and SF Holding on Friday announced a joint venture to provide international delivery service from China to the US and eventually include other destinations.
