In 2022, China's foreign trade exports hit RMB23.97 trillion, a 10.5% year-on-year increase. This growth parallels the evolution of the logistics industry, which is crucial to supporting commercial flows.
China's cross-border commerce development can be split into two main eras: the B2B foreign trade era and the cross-border e-commerce era. Since 2005, China's cross-border e-commerce began to take shape with the entry of eBay, Wish and Amazon in China, encouraging China sellers to sell on their global platforms. Post-2015, B2C cross-border e-commerce surged, with the sector volume approximately RMB3 trillion. As commerce evolves, Chinese logistics firms expanding overseas are also continuously transforming and upgrading.
Chinese logistics companies are moving to localize their solutions and fulfill final-mile delivery. Entering a phase that demands higher standards of operations. The rapid adoption of Chinese logistics AMR (Autonomous Mobile Robot) companies overseas highlights China's growing innovation in automation technology.
B2B Foreign Trade Logistics
China's cross-border logistics development began with the country's export economy boom. Key logistics players like Sinotrans, COSCO Shipping , and Kerry Logistics have not only witnessed but also supported China's economic reform, becoming critical to the export economy. Their performance trends generally reflect China's export economy trends.
Sinotrans: From Monopoly to Market Player
Founded in 1950, Sinotrans Co., Ltd. has transitioned from a state-owned monopoly to a market-oriented enterprise during China's early economic reforms. In 2000, it shifted from freight forwarding to comprehensive logistics, and by 2016, evolved into a logistics platform operator. In 2022, Sinotrans reported a revenue decline to RMB108.8 billion, with its freight forwarding segment experiencing a 19.1% revenue drop due to weakened global trade and lower shipping and air freight rates.
COSCO Shipping: Global Integration
Established in 1949 and restructured in 2016, COSCO Shipping has become a major global player. Formed through a merger in 2016, COSCO Shipping Group leverages its extensive route network and robust sales and service network to enhance the logistics value chain. In 2021, the company reported revenues of RMB53.9 billion, ranking second only to Sinotrans among freight forwarders.
Kerry Logistics: Adapting to Market Changes
Since its founding in 1981, Kerry Logistics has grown into a leading third-party logistics provider in Asia, now collaborating closely with SF Express. Kerry Logistics reported a 10% revenue increase in 2022, reaching HKD86.7 billion. Its international freight forwarding business faced a 3% decrease due to a drop in Asian exports and plummeting freight rates.
China's logistics companies are not only expanding globally but also setting new standards
in logistics technology and operations. As they move forward international expansion, these firms
are likely to continue playing a pivotal role in global trade logistics.
Cross-Border Small Package Services and Overseas Warehousing
Cross-border e-commerce logistics has two primary models: direct shipping and overseas warehousing. Direct shipping, encompassing postal small packages, commercial express, and dedicated line services. Dedicated line small packages strike a balance between postal and express services, optimizing cost and efficiency.
Overseas warehousing speeds up delivery and enhances customer experience but demands significant
financial and operational resources due to the necessity of local inventory pre-stocking.
Tier One Key Players and Milestones
Zongteng Group: Warehouse to integrated solutions
In 2022, Zongteng Group launched its first Boeing wide-body cargo aircraft, marking a significant milestone in Chinese cross-border e-commerce logistics. The company, encompassing divisions like Yunlu Logistics, Gucang, Guantong Distribution, and KuaBei, focuses on cross-border logistics, achieving nearly RMB20 billion in revenue. With over 1 million square meters of overseas warehouse space, it processes over 300 million orders annually, serving more than 15,000 cross-border e-commerce clients.
4PX Express : an early beneficiary of cross border ecomerce
4PX Express, is a leader in China’s cross-border e-commerce logistics sector. Focusing on dedicated lines, overseas warehousing, and FBA services, 4PX achieved a revenue of RMB12.4 billion in 2021. It operates over 40 overseas warehouses globally, covering nearly 1 million square meters and serving major markets in North America, Europe and North Asia.
J&T Express : from South East Asia to China, Middle East and Latin America
J&T Express includes J&T Express Brasil, J&T Express Middle East, J&T Express México, and more, has become a significant player in emerging market logistic sector. Started in Southeast Asia, achieving milestones like being the first to enter the e-commerce delivery field and the first to introduce comprehensive intelligent sorting systems in the region. It has since expanded to China which its rank top 5, as well as in the the Middle East and Latin America.
iMile : a quick learner from the Middle East
Founded in 2017, iMile Delivery has rapidly grown in the Middle Eastern market, focusing on last-mile logistics. The company capitalized on the region’s favorable tax policies and high average order values, supporting logistics costs for small and medium-sized delivery companies. Subsquently it has also expanded in Latin American supporting customers such as SHEIN.
Flash Express : replicating SF biz model in South East Asia
Flash Express, blending Chinese logistics models with local ecological forces, has grown rapidly in Southeast Asia. Despite late entry and initial challenges, Flash leveraged its understanding of niche markets and local adaptation to become a key player in the Thai market as well as SEA.
UniUni : leveraging the post pandemic ecommerce boom in North America
Founded in 2019, UniUni targets North America’s last-mile market with a crowdsourcing model, offering operational flexibility and efficient last-mile delivery. The company’s services have expanded to cover 70% of the Canadian user base, and has moved into the U.S. market.
Lalamove : the biggest logistic platform globally
Established in 2013, Lalamove has grown from intra-city and inter-city delivery services in Hong Kong and Southeast Asia to becoming the largest logistics marketplace globally. With significant investments in international markets, Lalamove exemplifies the successful export of China’s on-demand logistics innovation.
Trends in Cross-Border Logistics Services
The logistics sector is witnessing an expansion into new markets like Australia, New Zealand, South America, the Middle East, and Southeast Asia, driven by platforms like TikTok Shop, Temu and SHEIN.
Service providers are customizing offerings to meet diverse customer needs, focusing on bulk orders, direct-to-consumer (DTC) models, and niche areas like large-item logistics.
Digitization is enhancing full-chain visibility, risk alerts, and transportation data reporting,
with firms like Aftership and Surpath leading advancements. Integration of B2B and B2C operations
is becoming more prevalent, and localized last-mile delivery services are on the rise, with
companies like J&T Express, Flash Express, and iMile Express driving this trend.
Chinese AMRs Powering Global Logistics
Chinese logistics AMR (Autonomous Mobile Robot) technology firms are extending their reach beyond domestic markets, driven by high labor costs, labor shortages, and the global demand for automation in industries.
In 2022, over 25% of total orders for Chinese logistic AMR was exported, with leading AMR
companies generating more than half of their revenue from international markets. This
international expansion involves establishing local teams, partnering with integrators, developing
agency networks, and providing technical support. As AMR projects are delivered in bulk,
competition has evolved from product technology to localized sales, operations, and service
delivery.
Top AMRs Performers
Leading the pack in overseas orders are companies like Geek+ , Hai Robotics , and Quicktron Robotics. These firms
have established a significant presence in international markets, leveraging their advanced
robotics and AI technologies to enhance logistics efficiency and support intelligent upgrades
across various industries.
Geek+ : a case study in global expansion
Founded in 2015, Geek+ has utilized advanced robotics and AI technology to enhance logistics efficiency globally. With a 10% share of the global AMR market, Geek+ has served nearly 300 clients, including prominent brands like Nike, Decathlon , and Walmart. In 2023, Geek+ reported orders worth $2 billion and revenues of $1 billion, underscoring its significant market impact.
Hai Robotics : the box warehouse robotic specialist
Established in 2016, Hai Robotics focuses on delivering intelligent and customized warehouse automation solutions. Their HAIPICK system, the first box warehouse robotic system commercially deployed, has been implemented in over 500 projects globally. By 2023, Hai Robotics held 600 global patents and served clients in more than 30 countries and regions.
Quicktron: advancing intelligent warehousing
Since its founding in 2014, Quicktron Robotics has become the world’s second-largest provider of intelligent warehousing robot system solutions, with over 50% of its revenue coming from overseas markets.
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