UPS, SF Holding jv wins regulatory approval in China

UPS’ first 747-8F was once covered in brown-paper wrapping. The bird has now been unwrapped, and may soon be headed towards an airport near you!

On 28 September, UPS and SF Holding (the parent company of SF Express), formally received approval from China’s Ministry of Commerce to launch the joint venture it announced in May.

The joint venture will leverage the assets of both companies to enhance, and provide a wider range of international delivery services. Initially, the jv will focus on providing e-commerce merchants in China better access to the US market by focusing on deliveries moving from China to the United States.

A new service called Global Reach Plus will be the first jointly-launched product. Global Reach Plus can be thought of as an economical deferred service that offers the transparency of pricier express services, with parcels collected by SF in China, and ultimately delivered to their destination in the United States via UPS.

Global Reach Plus offers customers:

  • End-to-end visibility: using SF’s tracking tool, integrated with UPS’s industry-leading technologies
  • Single point of contact: for customer service via SF, with shipment pick-up by SF at the origin & delivery by UPS at the destination
  • Flexibility: Late order cut-off time for shipment pick-ups and multiple delivery options including the use of UPS My Choice® and UPS Access Point™ network
  • Time-in-transit-reliability with 5-7 business days deliveries powered by UPS & SF’s networks

Harld Peters, President, UPS China reiterated in a social media post that in the future, the jv may expand include collaboration on other lanes, beyond China to the United States.

In related news, last week UPS took delivery of the first of fourteen 747-8Fs it has on firm order with Boeing. UPS put the freighter, which it has named “The Spirit of Joe Sutter,” into service immediately. UPS has options for fourteen more 747-8Fs, and Cargo Facts has heard, but has not been able to confirm, rumors that UPS plans to exercise some, or all, of those options. Just how these aircraft will support the jv, remains to be seen. UPS continues to expand its trans-Pacific widebody capacity, which at present, SF does not have.

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