LETTERS
COLUMNS dear Editor,
Indignant Postman
Wait a Minute
I am the Chief Representative of the Conference of Asia-Pacific Express Carriers (CAPEC)
n O tober 1st 2009 the Ch - had nea ly 2 500 xpress de very se vic s upport-
O
nese gove nment ena ted a ng n arly 2 0 000 employe s many of whom r de
l w d cla ing that any pa ce s coote s o de ver parc ls as small as a l tt r o as Beijing Office, which represents the interests of DHL, FedEx, TNT and UPS in Asia. I read
del ve ed u ing exp ess se vic s arge as - w ll many of us h ve een he e ephan-
w igh ng 50g or ess w th n a ine s zed oads scoot rs in Ch na a e cap ble of
ity or 100g packag s b tween ci i s mu t be on- c rt ng
ro led ex lu ively by Sta e-owned post offi es Th s Other more ma ure del very se vic s though
“Indignant Postman” written by Bill Dodson on your latest edition, and have some follow up
xpl c t c t t on me ns ore gn compani s c nnot h ve prov ded re l compet t on to he Chine e
nve t n his part of the post l segment and w s po t o fi e I ve be n rea ly mpr ssed w th do-
met wi h a gre t d al of p ote t rom m jor nte - mes ic ca ri rs spec ally Shunfeng sa d Bhave h
n t onal players ike DHL Wor dwide Express nc Mis ry Manag ng Pa tner of Eas W nd Prec s on
F dEx Corp and he Un ted Parc l Serv ce Inc Eng neer ng based in Su hou In the l st ight comments on the information given.
A lot of th s deb te has been pent on wheth r months they ve rea ly grown apidly and become
Bi l Dods n s a pr nc pal f Tre d
sAs a Ltd bas d in Shan hai whi h or not China is vio a ing WTO ules of Na ional qu te el ab e nd p ofe sion l Ac ord ng o
re ea ches and ana yzes s ci eco T eatment whi h sta es hat memb r coun ri s Mis ry g oups ike Shunfeng have comput ri ed
nomic and m rket re ds that an
di rupt or ben f_it bus ne s o era p esent a evel p ay ng field to dom st c and ore gn n he same way as he nte nat onal ca ri rs and
t ons in China He c n be r ach d ntr nts But does he mp em nta ion of his new h ve ormed par ner hips w th small ocal p ayers
at wdod on@ r ndsa ia a ia
aw ea ly af ect he b g boys n towns so ou -o -th -way that t is
De pi e the r obj ct ons his p ohib t vely xpens ve to use a Fed
egment of he bus ness epre- Ex These car ie s an a so ost a
ents a small l ver of evenue for rac ion of what the nt rnat onal In his article, Dodson says that “On October 1st, 2009 the Chinese government enacted a
he m jor nt rna ional car ie s arr ers ch rge in China
The r s reng h dome t ca ly ies Neve the ess is ng sa ary and
n get ing la ger packag s o heir uel cos s a e a ready for ing do-
d st na ions qu ckly s curely mes ic c rr ers o inc ease heir
ran paren ly and at a onsi tent at s Wi h he fu ther d velop- law declaring that any parcels delivered using express services weighing 50g or less within
p i e evel Right now groups ment of nt r-c ty inf as ruc ure
ke DHL or Fed ex c nnot ost- ustomer requ rements for qua ity
ff ct vely compete gain t ocal of serv ce nd del very t me w ll
p ay rs in the expre s- e ter de iv- mply fu ther domes ic ndustry
a city, or 100g packages between cities, must be controlled exclusively by State-owned
ry bu ine s g ven he p ice sen i iv ty of he a - con ol dat on In wo to fo r ye rs th s ctua ly
Right n w rage Chine e con umer wh ther pr va e or com- may tran l te nto new oppor uni ies as a gr ater
gr ups like mer ial number of ma ure dom st c compan es wi l be r pe
B fore the ena tm nt of he new aw he S at - or acqu si ion by for ign players who want o pen-
DHL or Fed- x owned se vice a r ady ontro ed abo t 20% of he e ra e more deeply in o he nl nd exp ess m rket post offices. This citation means foreign companies cannot invest in this part of the postal
annot cost xpre s e ter m rket which grew 21% in 2007 and t w l be du ing the a quis t ons of hese matu e
ffectiv ly
7% n 2 08 acco ding to the Wa l St eet Jou nal domes ic comp nies th t arge nte nat onal car i-
The move ac ua ly seems more a p rt of an ove - e s w ll come up gain t nother of Chinas new
compete ll rend oward guoj nm ntui - l te a ly he ta e egu at ons he nt -monopoly law A ready Be j ng
segment, and was met with a great deal of protest ….” There is no content about 50g and
against lo al
dvances as he p iva e s ctor rec des - th n a has made judgments ag inst Coca Cola P nason c
pec fic j b at for ign inve ted compan es in he and Gen ral Mo ors wh ch ha e deeply roub ed
players in og st cs sec or The S ate wan ed a pie e of he mul in t onals acro s ndus ri s When he major
the express- as -g ow ng ct on e press ca r ers get o the po nt of wrang ng wi h
letter delivery
In eal ty t s ocal e press ca r ers that wi l be Be j ngs diosyncr t c in erp et t ons of he an i- 100g in the Postal Law passed by NPC on April 28, 2009. There are two relevant articles on
h rdest h t by he new law whi h r qui es api a - monopoly law they may remember the r ar ier
business. za ion amoun s hat w ll l t ra ly clo e hundr ds rus ra ions wi h the new po tal aw as ju t a wa k
of sma l domes ic expr ss serv ces In 2008 Ch na n he p rk
market access in the Law. Article 5 says that the delivery of letter articles within the scope
16 JANUA Y/ EBRUA Y 2010 www h in on ne om
of relevant regulations issued by the State Council shall be exclusively operated by postal
enterprises. This refers to postal monopoly. However, the scope of postal monopoly is still
undefined. China Post adheres to using the weight to define the monopoly while private
firms advocate for the method of weight or fee. Article 51 says that foreign businesses are
forbidden to invest in or operate domestic express delivery of letter articles. This exclusion
provision does not allow Chinese companies and consumers full access to foreign express
delivery service providers. As a result, there will be fewer options and lower quality services
for customers.
I also refer to Dodson’s comment that “right now groups like DHL or FedEx cannot cost-
effectively compete against local players in the express-letter delivery business, given the
price sensitivity of the average Chinese consumer, whether private or commercial.” Cost
effectiveness in the express industry is the ability to provide high-quality service at the low-
est possible cost. Low price does not equal cost effectiveness. The Chinese consumer
Send your comments
is no different than consumers of express delivery anywhere in the world. They require
and feedback to:
time-definite, guaranteed service with such add-ons as tracking and tracing of shipments.
editor@supplychain.cn
CAPEC members should be permitted to compete on a level-playing field in this market.
We reserve the right to edit the content of letters in order to achieve clarity and meet space requirements. We may also use
them in all electronic and print editions. Writers should consider any connection or relationship in terms of the subject of their
comments before submitting them to the CHaINA.
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Correction Notices
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There were a few mistakes that should be noted in the January/February
t
issue of CHaINA. First off, on page 16, our columnist’s name is Bill Dodson,
JANUARY FEBRUAR
Y 2010
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not Bob. On page 43 in the article “Missing Parts” Lawrence Gavin is from
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THE MA U $6 GAZINE FOR GL
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一本为全球供应链管理士倾力打造的专业杂志Y CHAIN LEADERS
the Delphi automotive company, not Adelphi. Last but not least, the Dell
photos from “Bamboo Baby Steps” on pg54-55 should be attributed to
their original source at PackWebasia, the online resource for packaging
and supply chain in Asia. Some information was also used from their origi-
nal article “Dell Bamboo Packaging.” Please go to their website at www.
packwebasia.com to find out more about this group.
We apologize for any inconvenience posed to the above parties.
6 MARCH/APRIL 2010 www.supplychains.com
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