UPS joins SF Holdings to energize China-U.S. cross-border e-commerce

UPS and Chinese transport and logistics company SF Holdings announced plans to establish international delivery services, starting with deliveries from China to the United States, with plans to add more countries in the future. The joint-venture deal clears a path for cross-border e-commerce sellers in China looking to access the U.S. market, providing service between the world’s two largest economies.

This agreement allows both parties to leverage their complementary networks, service portfolios, technologies and logistics expertise. However, regulators have yet to sign off on the deal.

SF Holdings is the parent company of Chinese express logistics carrier SF Express, which will presumably provide service on the mainland side of the deal. UPS, meanwhile, is expected to bring its entire integrator network and infrastructure into play, providing end-to-end delivery potential in both countries.

SF is one of China’s two largest express companies, and its airline subsidiary currently operates the largest express freighter fleet in the country. While the joint-venture will undoubtedly seek to leverage both company’s extensive assets and delivery networks – which for SF includes more than 13,000 service points and thousands of delivery personnel and vehicles within in China – it remains to be seen just how the airfreight cooperation will play out.