China's parcel delivery industry breaks new records

China's parcel delivery sector has broken new records, handling more than 140 billion parcels as of this week, surpassing the total volume of deliveries for last year, according to the State Post Bureau of China.

Chen Kai, deputy head of the bureau, revealed the figures at a conference in Beijing on Wednesday, highlighting the robust growth of the sector.

The milestone marks an impressive achievement for an industry that continues to expand rapidly as the country experiences its annual peak delivery season.

Last year, the country handled 132.1 billion packages in total, beating its previous record.

Chen also noted that on Oct 22 China's logistics network collected a staggering 729 million parcels — a year-on-year increase of 74 percent, a record for the single day collection volume.

The surge in parcel volume comes as China's delivery network sees remarkable technological and operational advancements.

"The industry has entered a new era, driven by innovation," Chen said, pointing to the sector's ongoing transformation through automation, digitization, and artificial intelligence.

This year, parcel delivery services have been enhanced by faster end-to-end logistics, including the widespread adoption of automation, AI-powered decision support systems, and advanced navigation technologies such as Beidou satellite systems. Automated sorting and data-driven route planning have become industry standards, helping to streamline operations and reduce costs.

The parcel delivery industry has been an important pillar of China's rapidly expanding e-commerce sector, as consumer demand continues to rise across the country. E-commerce giants and logistics providers are ramping up efforts to improve last-mile delivery services, with innovations such as home deliveries, automated lockers, and parcel stations becoming more common in urban areas.

In rural regions, the expansion of delivery networks has been particularly notable. Chen pointed out that rural areas, traditionally underserved by delivery services, are emerging as a new growth frontier for the industry. By enhancing rural logistics networks, including the development of village-level delivery stations and better integration with e-commerce platforms, China is unlocking new economic opportunities in its less developed regions.

China's international parcel delivery services are also expanding. The China-Europe freight train service now regularly transports mail and parcels to and from Europe. The global reach of China's delivery services continues to grow, with the construction of overseas distribution centers and an expanding fleet of dedicated cargo planes.

Despite the sector's rapid growth, industry leaders are taking steps to ensure that competition remains healthy and sustainable. Chen emphasized the importance of avoiding "rat race" that could undermine long-term growth and efficiency. Instead, the focus is on optimizing resource allocation, improving service quality, and expanding delivery networks to meet evolving consumer demands.

"The focus is now on enhancing service quality and expanding our network, particularly in underserved areas," Chen said.

"We are committed to creating a win-win environment for all stakeholders by promoting fair competition, improving customer satisfaction, and ensuring that the industry's rapid growth remains sustainable," he said.

As China's parcel delivery industry continues to evolve, it is set to play an increasingly crucial role in the country's broader economic development, providing key infrastructure for both domestic consumption and international trade.