Chinese Delivery Firms to Operate With Higher Prices During Spring Festival

China’s Spring Festival holiday is approaching, and domestic express delivery companies such as SF Express, STO Express, Yunda Express, YTO Express and Cainiao have announced that they will continue to provide services from January 20 to January 25.

Yunda, for one, will provide services in more than 300 cities during the Spring Festival period, while its flash delivery service will be available in 260 cities across the country. Cainiao’s services cover 103 cities, all of which normally will provide dispatching services except to remote areas. YTO and SF Express also said that during the Spring Festival, major express hubs, vehicles and sea and air routes will continue to operate.

On January 10, Cainiao announced that, during the Spring Festival, a total of 200 million yuan ($29.5 million) will be invested to subsidize couriers delivering goods in old elevator-free communities and remote areas. Each courier can increase income from 600 yuan to 1,000 yuan every month.‘s logistics arm announced that it will invest 500 million yuan to provide welfare subsidies higher than the national legal standards for employees who stick to the front line during the Spring Festival. Food delivery platform Meituan and also provided extra subsidies to delivery workers.

However, it is worth noting that the major express delivery companies have also initiated price increases during the Spring Festival, ranging from 0.5 yuan to 5 yuan.

During the Spring Festival holiday period from January 21 to January 27, SF Express will charge a resource adjustment fee for delivery services. Since January 9, due to the suspension of operations of third-party logistics lines, migrant workers have returned home for the Spring Festival. YTO has adjusted operating fees, such as goods weighing less than 1 kg will be charged an extra 0.5 yuan, while goods of 2 to 3 kg will be charged an extra 2 yuan.

On the government side, Shanghai, Nanjing, Wuxi, Suzhou and other cities are all providing subsidies to local express delivery practitioners. Taking Shanghai as an example, from December 25, 2022 to January 27, workers of e-commerce platforms and postal express delivery enterprises were given 60 yuan subsidies per person per day.

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This year, affected by the relaxation of pandemic restrictions, it has become much easier for Chinese residents to return home. According to Jiemian News’ report, the person in charge of several express outlets said that it has been really difficult to recruit people during the Spring Festival this year, and even reworking after the holiday will become a problem.