SF Holding Set to Broaden Its Air Cargo Horizons

SF Holding Co. is ramping up its airfreight operations this year to strengthen its express delivery services amid fierce competition in the courier sector.

The company has highlighted that expanding their large-item airfreight capabilities will be a major priority moving forward, as stated in a recent exchange filing.

Currently ranked No. 11 on the Transport topics Top 50 Global Freight Carriers list, SF Express reported a significant net income increase of 24%, reaching about $1.4 billion last year. Their sales also saw an uptick from approximately $37 billion to around $40 billion, with nearly half of that coming from their time-sensitive delivery services.

READ MORE: SF Express Eyes Second Listing in Hong Kong

The company’s same-day delivery network is set to improve thanks to enhanced high-speed rail and air routes for quick deliveries. Additionally, government subsidies are expected to boost consumer demand and open new avenues within the logistics landscape.

This strategic move comes at a time when Chinese couriers are grappling with heightened price wars. Analysts from Bloomberg Intelligence suggest that leading companies may opt for lower profit margins just to maintain market share and achieve economies of scale. In fact, average prices per parcel dropped by 18% year-over-year as of Febuary—an indicator of escalating competition heading into the seasonal lull between March and April.