China’s regulator approves UPS & SF Holding Joint Venture
September 29, 2017: Express delivery company UPS and China-based express delivery company SF Holding have recveived approval for 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.
“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,” said Ross McCullough, president of UPS Asia Pacific.
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.
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: end-to-end visibility and Single Point of Contact for customer service via SF; shipment pick-up by SF at the origin & delivery by UPS at the destination.
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.
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.
SF Holding is the parent company of SF Express.