Unlicensed courier services to be shut down by Postal Authorities

Unlicensed courier services to be shut down by Postal Authorities80 percent of the city’s courier companies were tagged illegal after the new postal law took effect last October 2009. Courier companies were given one year to file and obtain a legal license from the postal authority and those who failed to get their license was shut down leaving 300,000 employees out of jobs.

270 Shenzhen companies were able to obtained a license given by the Guangdong Postal Bureau and some got their license from the State Postal Bureau.  2,200 courier companies have registered with the city market administration authority. State Postal Bureau will be investigating and close all unlicensed companies. Under the new law will enable EMS the delivery service which is owned by China Post to gain a larger share in the market. The new law will require courier companies to increase their deliveries to at least 500,000 yuan for the deliveries done inside the city.

Private courier companies are struggling under policies that is protected State owned EMS, which is experiencing rapid growth. Yearly growth in the private sector is around 50 to 100 percent of the market. State Postal Bureau said that there was increase in the volume market that amounted to 1.4 billion items delivered from January up to September. The only problem is that the quality of service was criticized. The four leading private courier companies accounted for at least 40 percent of all complaints. The good news is the despite all the problems the delivery industry is a popular investment because of increased demand and sustained growth.

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