In an interview with CCTV on June 2, Ma Junsheng, head of the State Postal Administration, said that recently we had received complaints from users that FedEx had unauthorized forwarding of express mail to other places without the users consent and without prior notification, and had not delivered it at the agreed address, which seriously violated our national express industry. Laws and regulations have also seriously damaged the legitimate rights and interests of users. Therefore, the relevant state departments decided to conduct a case-filing investigation.
FedEx responded through its official website: FedEx attaches great importance to our business in China. Our relationship with Huawei Technology Co., Ltd. and all Chinese customers is very important to us. FedEx requires itself to provide customers with high standards of service. We will cooperate fully with any regulatory investigation on how FedEx serves its customers.
As of 19:00 Beijing time on June 3, FedEx fell 3.14% in front of the U.S. stock market on Monday. On this basis, FedExs market value evaporated by $1.26 billion (about 8.7 billion yuan) at the beginning of the market. FedEx fell 2.02% at 21:30 a.m. on the same day. It is noteworthy that UBS has dramatically lowered its FedEx target price to $136.
On May 23, Weibo netizens reported that FedEx had forwarded Huawei parcels to the United States for inspection without permission. FedEx denied it that day. But on the 25th, Huawei revealed to the media that a similar situation did occur.
FedEx (China) official website shows that the company currently employs about 9,000 people in China, serving at airports in Beijing, Shanghai, Shenzhen, Guangzhou and Hangzhou, with 220 flights per week delivering its cargo. In addition, FedEx has 78 branches in China, about 2700 transport vehicles and nearly 90 ground operation stations in China.
According to public data, the first stop for FedEx to enter China is Shanghai. It has set up an office in Shanghai with only three people. It mainly provides services to the Chinese market through commercial flights through agents.
In 1995, FedEx bought the only Evergreen International Airlines that could fly directly to China and the United States for $67.5 million. It opened regular flights between Shanghai and the United States, mainly transporting imported goods to China, and became the first international express logistics company to fly directly from the United States to China.
Since then, FedEx has continuously expanded its direct shipping business in China and its international business has been expanding. Until 2007, FedEx only carried out international express logistics business in China.
After the completion of the acquisition of the domestic express business of partner Daejeon Group in 2007, FedEx also launched the domestic express service, and began a positive confrontation with the domestic express company.
However, due to the rapid development of online shopping in the logistics industry in recent years, FedEx has a very low share of the express market in China when facing the encirclement of China Post, Shunfeng and four links and one access express enterprises.
A-share logistics sector rose more than 3.7% against the trend.
On the contrary, yesterdays A-share market, the logistics sector rose after the opening of the morning, the overall increase was more than 3.7%, the whole day showed a downward trend, as of the close, the overall increase was only 0.38%. Among them, Felida, Long-term Logistics and Oriental Jiasheng are trading up and down.
Tianfeng Securities Research and Report believes that the FedEx event once again emphasizes the strategic importance of domestic express and logistics enterprises. In the long run, international business, especially international business, is profitable. With the gradual expansion of overseas networks by domestic enterprises, it will become a new growth point in the long run.