China's parcel delivery sector hits record pace

Workers sort packages at a sorting center of an express delivery company at the e-commerce industrial park in Hongze district in Huai'an, Jiangsu province. [Photo by YIN CHAO/FOR CHINA DAILY]

China's peak season for parcel delivery is yet to come, but the sector has already hit a record pace.

As of Monday morning, China has handled more than 100 billion parcels so far this year — 39 days earlier than last year, the State Post Bureau of China said. That showcases the sector's strong resilience and vitality, it said.

According to the bureau's real-time monitoring data platform, the 100 billionth parcel was sent out at 7:39 am from a warehouse in Qingdao, Shandong province.

The parcel was a down jacket produced in Changshu, Jiangsu province, and pre-placed at a warehouse in Qingdao. A customer surnamed Liu, who is in Qingdao, received her parcel at about noon.

The sector's vitality demonstrates that China's economy has continued to improve, the bureau said on Monday.

China's parcel delivery sector has continued to grow rapidly this year. Since March, the number of parcels handled each month has reached a record 10 billion. In 2013, the annual number was less than 9.2 billion.

"China has a large market with a great number of consumers. As the consumption market continues to rebound, the significant increase in online shopping demand has been greatly driven by positive macroeconomic factors and has effectively led to the continuous growth of the industry," said Yang Fei, head of the parcel delivery section of the bureau's market inspection department.

In addition, the development of the industry in both urban and rural areas has become more balanced, while regional disparities have narrowed. Facilities have also been greatly improved, Yang said, adding that this has further spurred the sector's development.

In recent years, parcel delivery companies have been encouraged to expand investment and improve networks in rural areas, facilitating the movement of consumer goods to villages and agricultural products to cities.

The development of express delivery in central and western regions has accelerated, with both business volume and market share continuing to increase.

While improving the overall efficiency of parcel transportation and sorting in China, the industry has also continued to improve the layout of overseas hubs and warehouses in countries and regions involved in the Belt and Road Initiative, Yang said. This has further expanded the service network and consolidated the foundation for industry development, he added.

The parcel delivery industry has emerged as a crucial link between production and consumption, playing a vital role in the country's economic development and consumer vibrancy, as well as sustaining crucial supply chains during turbulent times, including during the COVID-19 pandemic. With its unique ability to connect households, businesses and online and offline platforms, the industry has become an essential barometer of the Chinese economy's well-being.