FedEx and UPS receive licenses for domestic China services

Washington DC
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FedEx and UPS confirm that they have each secured a license from China's State Postal Bureau to operate domestic express services between various cities within the country.

FedEx and UPS now have licenses for domestic express delivery between Shanghai, Guangzhou, Shenzhen and Tianjin. In addition to the four cities, UPS' license also covers Xi'an, while FedEx can operate domestic services to Hangzhou, Dalian, Zhengzhou and Chengdu.

UPS says that the approval is significant because it is the first time the carrier can operate express services within China's domestic market. Although its focus has been more on international shipments out of China, the Atlanta-based shipping company has an existing network of more than 330 cities in China.

"We believe over time that the Chinese domestic market is going to be very big and very important," says UPS.

FedEx, on the other hand, says it is conducting "business as usual" in China and that the license gives it "custodial control" over Chinese shipments. The carrier says it has been operating a domestic delivery business in the country since May 2007, servicing more than 400 cities by air and ground. FedEx currently contracts Chinese airline Yangtze River Express for air service operations within China and the new approval applies to express delivery services in this agreement.

FedEx currently operates international air services to and from Beijing, Shanghai, Guangzhou, Shenzhen and Chengdu.