The transfer center of ZTO Express in Phnom Penh, Cambodia. (File photo)
China's express companies have gone global, delivering not only parcels to people in foreign countries, but also logistics services to relevant countries.
Every year, about 2 billion parcels are involved in cross-border delivery services in China, 3 percent of the industry’s annual business volume.
In 2017, Sesolalin in Phnom Penh, Cambodia established a delivery center of ZTO Express, one of China’s largest courier companies, inspired by the prosperity of the Chinese online marketplace platform Taobao.
Delivery services mean a lot to Cambodia, a country which imports 60 percent of daily necessities from other countries, said Sesolalin. Therefore, the express industry and e-commerce have a far-reaching impact on Cambodia.
Currently, there are 40 delivery centers in Cambodia, covering 76 percent of the provinces in the entire country. ZTO Express has become the major undertaker of the China-to-Cambodia delivery services.
Due to the high commodity prices in Cambodia, it is more cost-effective to shop on Chinese e-commerce platforms and have the products delivered to Cambodia by ZTO services instead of buying them in Cambodia.
The Cambodia company of ZTO has created jobs for the local community. All its employees are local people, who earn a monthly income of $300 on average, higher than the local standard.
Currently, ZTO has opened more than 10 overseas warehouses. In addition to ZTO, other delivery companies are actively expanding cross-border business operations. China’s STO Express has established its delivery business in 26 countries including the US, the UK, Germany and France.
In September 2019, SF Airlines, the aviation branch of China's express giant SF Express, launched a new direct cargo flight service linking Wuxi in east China's Jiangsu province with Frankfurt.
The new route is expected to provide SF with more than 600 tons of cross-border capacity to Europe every week under regular operation.
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