China’s State Postal Bureau, under rising pressure in the marketplace, is trying to use its role as regulator to make life harder for its competitors, state media said Friday.
The bureau, also known as China Post, has given express delivery companies a tough choice in an attempt to save its own courier service, Express Mail Service, the China Daily reported.
Courier company, DHL Worldwide Express’ operating costs in South-East Asia has increased by 4 per cent due to higher crude oil prices. Globally, its operating costs jumped by 1 per cent. Though the percentage may seem insignificant, it could still hurt the company’s profit especially in the South-East Asia as it uses commercial aircraft for its operation.
Read MoreJapan’s top parcel delivery firm expressed doubt Wednesday as to whether the government was ready to open postal services to private firms as reports said the postal ministry would require a new player to install some 100,000 postboxes of their own. Yamato Transport Co. Ltd., seen as the only serious rival to the public entity if postal services are opened up to free competition, now sees it as “difficult” to enter the sector, company spokeswoman Miki Shiratori said
Read MoreThe government has mapped out a policy to make it obligatory for firms entering the mail delivery industry to install about 100,000 mailboxes each, bringing the total number of privately installed mailboxes close to 60 percent of those currently used by the Postal Services Agency.
Read MoreThe China International Freight Forwarders’Association has applied for government to help resolve a dispute between theseveral hundred express delivery companies operating in the country and theState Postal Bureau, which operates its own postal services under the name ChinaPost. The bureau issued a document earlier this month saying that all express delivery firms will only be allowed to deliver goods weighing morethan 0.5 kg and costing more than China Post’s Express Mail Service.
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