Parcel delivery sees booming growth

China's parcel delivery sector aims to handle a record 14.25 billion consignments this year, said a senior official with the national agency governing the industry.

In 2023, the sector made remarkable achievements, with the estimated number of parcels handled reaching 13.2 billion, up 19.5 percent year-on-year, Zhao Chongjiu, head of the State Post Bureau of China, said on Tuesday at the sector's annual conference in Beijing.

The conference outlined the sector's development strategy, goals and work priorities for 2024.

Zhao said the country's parcel delivery network and logistics system will be further improved, highlighting the construction of major infrastructure facilities and enhanced cargo transportation capabilities by air and road.

The use of high-speed railways for parcel delivery and the promotion of multimode transportation will be encouraged, he said.

The network and service quality in rural areas will also be improved, with the establishment of charitable posts at parcel delivery stations and the utilization of scheduled passenger buses to solve the "last kilometer "problem in rural areas, he added.

Zhao emphasized that another major goal for the parcel delivery sector this year is green development. Parcel delivery companies will be encouraged to introduce more new energy vehicles for transporting parcels, he said.

Over the past decade, China's parcel delivery sector has experienced rapid development, handling more than 120 billion packages in 2022, a tenfold increase since 2013.

"Last year, the parcel delivery sector improved its ability to ensure smooth circulation, boosted the efficiency and capability to handle parcels and enhanced the development of intelligent delivery," Zhao said.

To improve logistics efficiency, dedicated freight airports and air hubs were constructed and put into operation last year. For instance, the dedicated cargo airport in Ezhou, Hubei province, mainly invested in by SF Express, is now fully operational. In addition, construction has begun on another freight air hub in Jiaxing, Zhejiang province, mainly invested in by YTO Express.

Last year, parcel delivery services and networks in rural areas were improved, facilitating the transportation of agricultural produce to urban areas and commodities to rural areas. This resulted in increased incomes for rural residents and improved their lives.

In terms of global development, 312 overseas distribution centers and 300 warehouses were established last year to promote the sector's expansion internationally.

The country's booming parcel delivery sector has had a transformative impact on people's lives, said Sun Jijun, head of Yunda Express' distribution center in Dongxing, Guangxi Zhuang autonomous region. He said that couriers' incomes are among the highest in the city as they earn as much as 6,000 yuan ($837.5) to 8,000 yuan per month.

After entering the parcel delivery business in 2013, Sun has worked in many positions in the company, including as a courier and a sorter. He owns an apartment in the city not far from his parents' home.

The emerging parcel delivery business has offered him a stable, pleasant and sometimes challenging job for more than 10 years, he said.