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UPS to expand service in China's lower-tier cities

By Zhong Nan | | Updated: 2020-11-17 15:28
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Workers unload goods from a UPS cargo flight at its Shanghai international hub in Shanghai Pudong International Airport. [Photo provided to]

United Parcel Service Inc, one of the world's largest logistics companies by revenue, plans to expand service coverage in China's lower-tier cities and counties, as well as its western region during the 14th Five-Year Plan (2021-25) period, said its senior executives.

The Atlanta-headquartered company recently announced that it has completed the service network building in Chengdu, the capital of Sichuan province and it has notably improved the transit time between the city and other global locations.

"Because of the COVID-19 pandemic, we found that our clients from businesses such as e-commerce, technology products and medical sectors have surging demand for both delivery of urgent and regular shipments," said Michelle Ho, president of UPS China.

Thanks to China's early recovery from the COVID-19 pandemic, new business models and growing size of its domestic market, she said the growing trade value among China, the European Union and the Association of Southeast Asian Nations will create more growth opportunities for countries in these regions.

To address today's uncertain global business and trade environment, she said UPS, also a three-time participant to the China International Import Expo, has launched a series of webinars around the Asia-Pacific region, including in China, to provide market insights and guidance to businesses on how they can navigate disruptions.

In the area of e-commerce, China is also the world's largest e-commerce market and the country's manufacturing pace has returned to a fast and smooth pace. UPS believes that the country has an irreplaceable role to support the global economy during the post-pandemic era, said Monrudee Theeraworawit, director of marketing of UPS China.

The recovery can be identifiable in the trade figures. China's foreign trade expanded 4.6 percent year-on-year in October, with exports jumping 7.6 percent on a yearly basis and imports climbing 0.9 percent in yuan terms, according to the latest data released by the General Administration of Customs.

UPS owns and operates two large hubs in the country. In South China's Guangdong province, its UPS Shenzhen Asia Pacific Hub provides services for customers doing business with emerging Asian economies, while the company's Shanghai International Hub links China to the rest of the world.

It also has received Advanced Certified Enterprise certification in nine cities under China's Authorized Economic Operator (AEO). UPS customers can enjoy benefits including lower customs inspection ratios for exporting and importing goods, simplified declaration formalities and more efficient customs clearance.

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