Parcel deliveries show significant growth in H1

China's parcel delivery sector has shown significant growth in the first half of the year, with the expansion of business in the overseas market and an increasing number of packages delivered to rural areas, the industry's regulator said on Tuesday.

According to the State Post Bureau of China, nearly 50 billion parcels were handled across the country in the first six months of this year, more than 15 billion compared to the amount handled over the same period last year.

Last year, 34 billion parcels were received and delivered in China between January and June.

The monthly number of parcels handled from January to June was more than 8 billion, except for February, which was affected by the Spring Festival holiday.

Since the second quarter of the year, the sector has seen a higher increase in the record number of monthly parcels handled nearing 10 billion, the bureau said.

The sector also is expected to maintain the good momentum of development in the second half of the year, the bureau said.

The bureau estimated the sector will handle 95.5 billion parcels this year.

"In 2018, annual parcel deliveries topped 50 billion for the first time. It took about eight months to reach the number last year. This year, it took a little over six," said Wang Yuehan, an associate researcher with the bureau's development and research center. She noted the capacity to make a delivery outside of China improved in the first half of the year.

Between January to June, Chinese express delivery companies bought 10 full-cargo planes to handle more international parcels.

Nearly 20 international air cargo routes were opened, such as Xi'an in Northwest China's Shaanxi province to Tokyo and Shenzhen in South China's Guangdong province to Los Angeles.

Parcel delivery services have been expanding from serving online retailers to more diverse areas, such as vaccine shipment and fresh and agricultural produce, she said.

Wang also attributed the growth to the expansion of the network, especially to rural areas.

Some 98 percent of towns have set up stations to handle parcels in China. In villages without a parcel delivery network, residents have to travel to towns to pick up packages.

"Thanks to a national campaign to send parcels to villages, the quality of the parcel delivery services is enhanced in rural areas. It takes agricultural produce from rural areas to a bigger market in an urban area," Wang said, adding that it also brings city-made goods to villages.

In the first six months, about 30 percent of parcels were sent to rural areas.

Hong Ya, who runs a hotel in Luci village in East China's Zhejiang province, said it is more convenient to do shopping online and pick up the purchases after a station was set up to handle parcels in the village in May.

"I used to drive to the town to pick up my packages. The round trip took at least half an hour, but now the trip (to pick up the parcels) is less than 10 minutes on foot," she said.