FedEx China sales up 40 percent
FedEx Corp. said China revenues jumped 40 percent on an annualised basis in the quarter ending in February.
The data was disclosed by David Cunningham, FedEx’s Asia Pacific president.
Cunningham said that despite the increase, FedEx still fears Chinese legislation now in the works could impede progress and protect China’s postal monopoly.
Domestic airfreight services are dominated by China Post or domestic forwarders such as Sinotrans. FedEx is also battling with rivals United Parcel Service, and DHL, a unit of Germany’s Deutsche Post, for a share of China’s soaring export market.
“When you get down to it, you have to be concerned that there’s an unlevel playing field if this legislation goes through,” Cunningham said, referring to a plan by Beijing to tax foreign express companies to finance a rural postal delivery service. “We’re certainly making our views known about it.”
Cunningham said revenue from China grew 40 percent in the three months to Feb. 29, almost double its growth in the Asia Pacific region.
Sinotrans, which has partnerships in China with DHL and UPS, on Monday said net profit grew 23 percent in 2003 and said it expected these to grow 10 to 15 percent this year, with revenue increasing by 15 to 20 percent.
Industry estimates value China’s airfreight market at as much as $1.5 billion a year.
Cunningham also said FedEx is adding 100 locations to its network of more than 200 Chinese cities.
