Workers sort express parcels at a public distribution center in Lianyungang, East China's Jiangsu Province, on August 13, 2024. As of that day, China's express delivery sector had handled 100 billion parcels in 2024. Average monthly deliveries exceeded 13 billion parcels, while monthly revenue of express delivery companies surpassed 100 billion yuan ($13.9 billion), both setting new records. Photo: VCG

China's express delivery sector has maintained a rapid growth momentum, underscoring the country's recovering consumer market. As of Tuesday, the sector had handled 100 billion parcels, reaching the milestone 71 days earlier than in 2023.

Average monthly deliveries exceeded 13 billion parcels, while monthly revenue of express delivery surpassed 100 billion yuan ($13.9 billion), both setting new records, according to data released by the State Postal Bureau on Tuesday.

The impressive figures highlight the vibrancy of China's express delivery industry and its increasing efficiency, reflecting the sector's broad economic vitality and resilience, said Wang Yuehan, director of the State Postal Bureau's development and research center.

Experts attributed the surge in parcel deliveries largely to the booming online shopping sector, which has been significantly driven by the unleashed consumer potential in rural areas. 

The release of purchasing power in rural markets has significantly contributed to the rapid development of China's express delivery sector, with online shopping orders in these markets generating a large volume of parcels, Lu Zhenwang, founder of Shanghai Wanqing Commerce Consulting, told the Global Times on Tuesday.

Improvements in the nation's logistics infrastructure have also accelerated delivery speeds, particularly benefiting rural buyers. Previously, parcels ordered online could take three to five days to reach rural areas, but now the delivery time has significantly been reduced, said Lu.

"Comparatively lower prices available online have further unlocked the consumption potential in these regions, fostering a vigorous online shopping market," Lu noted.

The express delivery industry has seen a rapid expansion into the country's rural areas, with improvements in logistics infrastructure. More than 1,200 county-level public delivery service centers and more than 300,000 village-level logistics stations have been set up across China, creating a comprehensive rural delivery network.

With China's economic rebound, the express delivery sector has thrived this year, supported by government policies aimed at expanding domestic demand and stabilizing growth. Wang noted that the industry has effectively supported the development of the online economy and facilitated the movement of goods.

The State Post Bureau's report on the express delivery industry for July showed notable gains, with the industry development index achieving an 11.8 percent year-on-year growth rate. 

Parcel volume for July is estimated to have risen by 22 percent year-on-year, with revenue up about 16 percent.

China's express delivery sector is evolving, with closer ties to the manufacturing industry, the accelerated adoption of new technologies and higher service quality. The industry is also advancing the use of unmanned technology and expanding the air transport network to boost its delivery capability, according to the bureau.

In a recent development, Northwest China's Xinjiang Uygur Autonomous Region has introduced its first direct postal route linking Kashi and Xi'an, Northwest China's Shaanxi Province. This new route, which began operations on Monday after a 10-day trial, reduces parcel transport time to only 53 hours - cutting delivery times by two days and significantly improving delivery efficiency.

Global Times