Logistics companies scent opportunities amid crisis

Despite the tough economic outlook, China remains the top priority for UPS in 2009. With global credit flow

disruptions, businesses here appear to be increasingly vulnerable to supply chain disruptions that can have a catastrophic impact on business performance.

While the challenges are daunting, there is an upside for corporations and the 40 million small- and medium-sized enterprises in China - an opportunity for competitive advantage. To achieve this, we recommend companies structure their supply chain appropriately, adopt a multi-model strategy, ensure the visibility of their supply chain and develop trusted partnerships with logistics providers within the supply chain.

By pursuing risk mitigation and resiliency strategies, we believe that supply chain executives can help their organizations in China grow and retain customers, increase revenues and profits and improve shareholder value.

- Richard Loi, head of China and senior vice-president, UPS Asia-Pacific Region

We currently face a real financial market crisis that is already having tangible effects on the real economy and business. As reported, the macro-economy and industry slump will continue in the first half of the year in the China market.

As I look forward to 2009, I'm confident that if we invest in infrastructure, optimize our product offerings and provide our customers with more cost-effective services, we will be better placed to be a creative, vibrant, profitable organization, leveraging every opportunity that our clients and the market provides. Looking further ahead, the economy undergoes cycles every few years, and we need to position ourselves to be ready for the upswing.

- Wu Dongming, managing director, DHL-Sinotrans International Air Courier Ltd

We are anxious for a fresh start in 2009 given the significant challenges the industry experienced in 2008. Also, we

 are fortunate to have the year of the Ox come our way. If we follow the diligent ways of the Ox, we can look forward to a challenging, yet rewarding year.

- Eddy Chan, head of China, FedEx

(China Daily 02/16/2009 page6)