欢迎访问 武汉桑拿导航网!

Federal logistics giant losing its domestic market



"Our solution connects people to all possibilities." This is the concept that FedEx publishes on the official website. However, in recent days, FedEx’s “possibility” from Japan and Vietnam to send four packages sent to China’s Huawei to the United States has been questioned. FedEx’s repeated responses to this matter have been inconsistent. Currently, FedEx is undergoing inspections by the national postal department. On June 2, Wang Fuwen, deputy minister of the Ministry of Commerce and deputy representative of international trade negotiations, said at the press conference of the new state that FedEx would conduct legal operations in China. If it violates Chinese laws, it needs to investigate according to Chinese laws. This is understandable, there is no need to over-interpret.

As the first FedEx to enter the Chinese market for export express delivery, it was founded in the United States in the 1970s. In 1984, it launched its express delivery business in China. In 2000, FedEx shipped two giant pandas from China to Smithsonian, Washington, USA. National Zoo. FedEx has served more than 200 cities in China for 35 years. What is the proportion of China's market business in FedEx business? If the Chinese market is damaged, how does FedEx fight?
Huawei 4 parcel was forwarded to the United States, and FedEx responded inconsistency

On May 23, the social platform reported that FedEx transferred the parcels sent from Huawei factories in Japan and Vietnam to Huawei for inspection and interception. According to the FedEx logistics tracking records provided by Huawei, the two parcels sent from Tokyo to Huawei in China on May 19 and May 20 arrived in Memphis, Tennessee, on May 23. The two parcels issued from Hanoi on May 17 arrived at the local federal distribution station in Hong Kong and Singapore on May 21 and were stranded due to “unusual delivery”.

FedEx Express (China) Co., Ltd. issued a statement on the official Weibo on the evening of May 23, saying that the news that the recent social media platform spread FedEx’s confiscation of customer shipments and transshipment to the United States was seriously inconsistent with the facts. FedEx is committed to providing its customers with the high quality transportation services they expect and in strict compliance with applicable laws and regulations.

Subsequent events reversed. On May 28th, FedEx (China) apologized for the mistaken transfer of Huawei shipments through official Weibo. FedEx says that we value all our customers who deliver more than 15 million packages per day. We apologize for the mistransportation of a small number of Huawei shipments. We confirm that there are no external parties that require FedEx to ship these shipments. The shipment is being returned to the shipper. This event does not mean that our more than 450,000 employees worldwide are committed to providing our customers with the high quality transportation services they expect every day.

The incident did not come to an end because of FedEx’s apology. On the same day, Huawei spokesman Joe Kelly said: "Recent experiences have shown that important business documents sent through FedEx have not been delivered to the destination, and will have to re-examine the relationship with FedEx." On the 29th, at the regular press conference of the Ministry of Foreign Affairs, Foreign Ministry spokesperson Lu Hao said in response to the relevant questions that we generally do not comment on business practices between enterprises. But when this happens, Huawei and the public hope that FedEx will give a reasonable explanation, which is also reasonable.

However, as of press time, Huawei China officials have not commented on this matter. US President Trump will pay a state visit to the UK from 3 to 5 this month. Before leaving, Trump once again mentioned China's Huawei company in an interview with the British "Sunday Times", saying that he would urge the UK to carefully deal with Huawei's participation in its 5G network construction, and said that it is confident that the British government will abandon the use of Huawei equipment. . An interview with the Sunday Times on June 2 showed that Trump was asked how to look at the UK plan to allow Huawei to play a limited role in its 5G network construction. The UK can choose to cooperate with companies outside of Huawei, the United States and the United States. National security must be very cautious.

As early as last week, the British media has quoted sources as saying that Trump is preparing to express his opposition to the UK's partial application of Huawei's 5G equipment during his visit to the UK. In April this year, the National Security Council, chaired by British Prime Minister Teresa May, agreed that Huawei is “restricted” to participate in the construction of 5G networks such as antennas and other “non-core” infrastructure. However, due to the resignation of Mei, the British government has not yet made a final decision. In this regard, Trump said that he believes that "everything will be solved, you will see."

"You know that we have a very important intelligence gathering organization (five-eye alliance), and we work very closely with the UK, so we must be very careful," Trump said in an interview. According to Reuters, US Secretary of State Pompeo met with German Foreign Minister Mas last week without threatening to claim that if a country insists on using Huawei equipment, the United States will not share information with it. It is worth noting that just as Trump tried to pressure the UK to "block" Huawei, BT operator EE had used Huawei equipment to open 5G commercial services for the first time in the UK on the 30th of last month. The British public opinion gave it a high degree. Evaluation.

At the same time, more and more countries and regions have expressed their trust in Huawei. Last week, Malaysian Prime Minister Mahathir Mohamed said in a speech in Tokyo, Japan that Huawei has achieved "significant progress beyond US technology." "The United States needs to recognize this capability and can now see it in Eastern countries." Mahathir also said, "Huawei's research technology far exceeds that of Malaysia, and we will use their technology as much as possible." Brazilian Vice President Moran also said during his recent visit to China, "For Huawei to invest in Brazil, we do not set Restrictions." Earlier, Hungarian Finance Minister Mihai Wolga made it clear that Hungary regards Huawei as its IT strategic partner and welcomes Huawei.

According to news released by Huawei, the company has signed a memorandum of understanding with the African Union's AU headquarters in Addis Ababa. The two sides will strengthen cooperation in the fields of broadband, Internet of Things, cloud computing, 5G and artificial intelligence. Wang Dong, vice president of Huawei's Northern Africa Region, said that the cooperation showed continued AU's continued trust in Huawei and also ended the rumor of the so-called "AU data breach."

“The security issue about Huawei 5G is a complete joke,” said Alan Michael Sug, a member of the British Parliament, recently said on social media. “This has nothing to do with security. It’s business-related. Huawei’s competitors in the US are trying to block them. Outside the market. Robert Hannigan, former head of the UK government communications headquarters, also wrote in the Financial Times that some people think that using Chinese technology in 5G network deployment means unacceptable risks, which is completely " Nonsense." The German "Daily Mirror" published an article stressing that "Europeans should not blindly follow Trump's footsteps". The security standards surrounding 5G must be discussed, but such discussions should be carried out at the content level with neutral cybersecurity experts. And "not abused as a handle to manipulate international trade disputes."

State Post Department Intervenes in the Investigation of FedEx: Cooperating with the regulatory investigation of FedEx is considered by the outside world to be disrespectful of contractual obligations. How does Huawei maintain its legal rights? Huo Zhengxin, a professor of international law at China University of Political Science and Law, said there are two ways to go. One is to complain to the Chinese administrative department, seek the Chinese administrative department to investigate the incident according to law, and make relevant treatment in accordance with Chinese laws. The second is to seek judicial relief, because Huawei and FedEx have such a contract that it can ask FedEx to assume liability for breach of contract. If FedEx is not willing to assume liability for breach of contract, Huawei can also seek judicial remedies from Chinese courts.

On June 1st, the United States FedEx’s undelivered express mail in China caused serious damage to the legitimate rights and interests of users and violated the relevant regulations of China’s express delivery industry. The relevant state departments decided to open the case investigation. On the same day, Ma Junsheng, the director of the State Post Bureau, said in an interview with CCTV that we recently received a complaint from the user. The US Federal Express Company forwarded the shipment to him without the prior consent of the user without the user’s consent. Land, failed to deliver at the agreed address, seriously violated the regulations of our country's express delivery industry, and seriously damaged the legitimate rights and interests of users. Therefore, the relevant state departments decided to conduct an investigation.

In response, FedEx responded through the official website, "Federal Express attaches great importance to its business in China. Our relationship with Huawei Technologies Co., Ltd. and all Chinese customers is very important to us. FedEx requires itself to provide high standards of service to its customers. We will fully cooperate with any regulatory investigation of how FedEx serves its customers."

"China's express delivery laws and regulations are relatively sound, including the "People's Republic of China Postal Law", "Express Interim Regulations", "Express Delivery Market Management Measures" and "Courier Service National Standards", etc." Ma Junsheng introduced, especially to users, core One of them is that the enterprise that requires the courier service must deliver the face-to-face delivery according to the agreed address, the recipient, and the recipient of the recipient. If you violate this article and damage the rights of users, the postal administration has the right to investigate.

Huo Zhengxin, a professor of international law at the China University of Political Science and Law, said that the Chinese administrative department will investigate the incident in accordance with China's Postal Law, the Postal Law Implementation Rules and the Express Regulations. As a courier company operating in China, FedEx is obliged to cooperate with the investigation of the Chinese administrative department and provide evidence. The administrative department of China will make corresponding punishments based on the results of the investigation, including fines, order rectification and even revocation of business licenses.

Zhao Zhan, a lawyer of Beijing Zhilin Law Firm, said that according to the provisions of Article 42 of the Provisional Regulations on Express Delivery, fraudulent, privately opened, concealed, destroyed, resold or illegally inspected other people's express mail does not constitute a crime, and law and order is given according to law. Management penalties. If the enterprise that operates the express delivery business has the prescribed behavior of the preceding paragraph or illegally detains the express mail, the postal administration department shall order it to make corrections, confiscate the illegal income, and impose a fine of not less than 50,000 yuan but not more than 100,000 yuan; if the circumstances are serious, it shall be 100,000 yuan. The above fine of less than 200,000 yuan, and can be ordered to suspend business for rectification until the cancellation of its express business license.

On June 2, Wang Fuwen, deputy minister of the Ministry of Commerce and deputy representative of international trade negotiations, said at the press conference of the State Council that FedEx would conduct legal operations in China. If it violates Chinese laws, it needs to conduct investigations in accordance with Chinese laws. This is understandable. There is no need to over-interpret.

The performance is not as expected. Recently, the stock price continued to fall, hitting a new low in the year.

Affected by the above incidents, the Beijing News reporter noted that FedEx's share price continued to fall on May 22, which closed down 3.57% on May 22 and closed at $162. On May 31, it closed down 2.36% to $154.28. During the trading day, it only rose 0.71% on May 29, and fell 4.8% in the week. At the same time, the reporter found that FedEx's stock price started from 160.68 US dollars this year. In late April, its share price was close to 200 US dollars per share. Since then, it has continued to fall. On May 31, the stock price has become the lowest in 2019, and the price is 154.28 US dollars per share. Compared with the highest position of $199.32, it fell 22.6%.

Behind its share price decline, its performance is not as good as expected and the global economic situation. On March 19 this year, FedEx announced its third fiscal quarter of FY 2019 (as of February 28 this year), the results were not as good as Wall Street expectations, partly because of the rising cost of FedEx's terrestrial business and partly by the global economic situation.

According to financial report data, FedEx's third-quarter net profit for the fiscal year of 2019 was 739 million US dollars, of which net profit fell 64.37% year-on-year, and earnings per share were 2.80 US dollars. The same period last year was $2.07 billion, or $7.59 per share. After a one-off project adjustment, the profit was US$797 million, or US$3.03 per share, compared with US$1.02 billion, or US$3.72 per share for the same period last year.

FedEx's total operating income for FY2016 to FY18 was $50.365 billion, $60.319 billion, and $65.50 billion, and net profit was $1.820 billion, $2.997 billion, and $4.572 billion, respectively.After 35 years of business in China, losing the domestic express delivery market as one of the global logistics giants, FedEx was the first to enter the Chinese market. In 1984, FedEx, which was established 11 years ago, entered China in a Chinese-foreign cooperation. This is even earlier than the chip giant Intel, which entered China in 1985, and another high-tech company, Hewlett-Packard, and Microsoft, which set up a representative office in Beijing in 1992.

According to public information, FedEx’s first stop in China was selected in Shanghai. It has an office in Shanghai with only three people, mainly through agents using business flights to serve the Chinese market. However, FedEx before 1995, in the Chinese market, can not operate alone due to policy reasons, can only find agents to carry out business, delivery and pickup are agents responsible.

In 1995, FedEx acquired the only evergreen international airline that could fly directly to China and the United States for $67.5 million. It opened a scheduled flight between Shanghai and the United States, mainly delivering imported goods to China, becoming the first direct flight from the United States. China's international express logistics company. Since then, FedEx has continued to expand its direct business in China, and its international business continues to expand. However, due to policy reasons, FedEx before 2007 can only carry out international express logistics business in China.

After the federal government completed the acquisition of the partner Datian Group's domestic express delivery business in 2007, FedEx also launched a domestic express delivery service, which began a positive confrontation with SF. FedEx's share of the domestic express delivery market is very low when it is surrounded by express delivery companies such as China Post, SF Express and Stone. According to the data released by the State Post Bureau, in the first half of 2018, private express delivery enterprises accounted for 90% of the market share. In terms of specific market share, the market share of SF and “four links and one” is not much different. Among them, Zhongtong's market share is slightly dominant, about 17%; Yunda and Yuantong's market share are closely followed, with market share of 14% and 13% respectively; Baishi, Shentong and SF's market share are 10 respectively. %, 9%, 8%. In contrast, FedEx and other foreign express delivery companies have a very low market share.

At present, China's express delivery business has become the largest market in the world. In recent years, the domestic market and the international express delivery market are growing rapidly. According to the State Post Bureau's "2018 China Express Development Index Report", in 2018, China's express delivery business surpassed the sum of developed economies in the United States, Japan and Europe, and its scale ranked first in the world for five consecutive years, three times that of the second US. More than half of the global express parcel market, becoming the power source and stabilizer for the global express parcel market.

According to the "Statistical Bulletin of the Development of the Postal Industry in 2018" issued by the State Post Bureau, the express delivery business grew rapidly in 2018. The annual express delivery service business volume was 50.71 billion pieces, a year-on-year increase of 26.6%; the express delivery business income was 603.84 billion yuan, a year-on-year increase of 21.8%. The data shows that the international/Hong Kong, Macao and Taiwan express delivery business grew rapidly in 2018. In the whole year, the international/Hong Kong, Macao and Taiwan express business volume was 1.11 billion pieces, a year-on-year increase of 34%; the business income was 58.57 billion yuan, a year-on-year increase of 10.7%.

Among them, the proportion of state-owned, private and foreign-funded enterprises accounted for 12.3%, 86.2%, and 1.5% of the total express and parcel market respectively. The revenue of state-owned, private, and foreign-funded enterprises accounted for 11% and 83.6% of the total express and parcel market respectively. , 5.4%. Previously, the international express logistics market was dominated by the three major companies, FedEx, United Parcel Service (UPS) and German DHL. The first FedEx in China was regarded as the first of China's international logistics business. However, Xu Yong, the chief consultant of Express Logistics Information Network, said that the three international express delivery companies have no share in China domestic express delivery. How much share of domestic international express delivery should be based on the data of relevant authorities.

The reporter also did not find the number of international express delivery services in China and its share in the total FedEx business in the FedEx earnings report. According to Reuters, in 2018, trade between the United States and China accounted for about 2% of FedEx's total revenue. However, FedEx's advantage in China's international business is also being broken by domestic private express delivery companies.

“FedEx Express has done a good job in international logistics and shipping.” On May 28, a senior person from the Chongqing Postal Delivery Department told the media that Chinese express delivery companies accounted for about 70% of China’s international logistics market. More than international giants such as FedEx. Earlier this year, Amazon also added "transport and logistics services" to its competitors list for the first time in its annual document, clearly indicating that it will compete with FedEx and UPS Express. In these situations, the competitive pressures that FedEx will face will increase.

Ma Junsheng, director of the State Post Bureau, expressed his sincere hope that foreign companies strictly abide by China's express industry regulations, operate according to law, strengthen service quality control and operation management, and provide express service postal communication security and economic security in compliance. He introduced that the express delivery market in our country is huge, with rapid development and great potential. We welcome all countries from all over the world to invest in China's express delivery market, but there is a premise that you must abide by Chinese laws and regulations and must also maintain China. The legitimate rights and interests of enterprises and users cannot be used to block normal courier services for non-commercial purposes, nor can they harm the legitimate rights and interests of Chinese enterprises and users.


  • Federal logistics giant losing its domestic market

  • admin都市资讯
  • Our solution connects people to all possibilities. This is the concept that FedEx publishes on the official website. However, in recent days, FedExs possibility from Japan and Vietnam to send four packages sent to Chinas Huawei to the United


关于我们 联系我们