What’s new: Parcel deliveries in April recorded a second year-on-year decline in China as restrictive measures to contain Covid-19 outbreaks continue disrupting business flows and logistics.
A total of 7.48 billion parcels were delivered in April nationwide, an 11.9% drop from the same time a year ago and 1.06 billion fewer than in March, according to the national postal service authority.
Postal and courier businesses posted 74 billion yuan ($10.9 billion) of April revenue, down 10.1% year-on-year.
Shanghai led the decline. A city-wide lockdown has lasted more than six weeks since late March. A total of 28.75 million parcels were delivered in Shanghai in April, a 90% slump from a year ago.
The context: Authorities in Shanghai have moved to support courier services to resume operating as part of a broader effort to gradually reopen businesses.
The city added seven delivery businesses Monday to a list of companies allowed to resume operations amid the lockdown. That followed a first batch of 21 logistics operators granted approval earlier this month.
A city official said last week that 16 parcel distribution centers in the city resumed operations, with five more to follow. The city’s postal and courier services have resumed to one-sixth of normal capacity.
Industry sources told Caixin that delivery businesses still face restraints in restoring business in Shanghai, mainly due to persisting restrictions on transportation and employees’ movement.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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