Why do many express express also have to raise the express fee?

May 8-9, Shentong, Yuantong, Baishi, Yunda, Zhongtong and other major express enterprises have issued a public announcement on the official website, announced that it will be appropriate to adjust the high-speed free period of the implementation of preferential policies, the price of express services to adjust. The announcement issued by the express companies is “similar”.

Taking Shentong Express as an example, Shentong said in the announcement: “With the improvement of the domestic epidemic, the national highway has been restored to normal charges on May 6, in order to ensure the orderly resumption of production at the end of the network, to provide customers with better service, I Division will be in accordance with market conditions to adjust the high-speed free period of the implementation of preferential policies, details please consult the local network.” “

Why do many express express also have to raise the express fee?Why do many express express also have to raise the express fee?

Prior to the express enterprises concentrated in the release of price adjustment statements concentrated in the “double eleven” eve, the express logistics industry Zhao Xiaomin had to interface news analysis, “the current domestic express industry prices mainly concentrated in the peak business brought about by the promotion season of e-commerce, this price adjustment is in line with the normal fluctuations of the market law, just like during the Spring Festival travel ticket prices will rise.” “

However, now after the outbreak of China’s national economy has not fully returned to normal, “four-way one” (i.e., Zhongtong, Yunda, Yuantong, Shentong, 100) why should announce price increases?

In fact, in the announcement, these express companies have mentioned a very important reason: with the domestic epidemic gradually improved, according to the unified deployment of the Ministry of Transport, the nationwide toll roads (including toll bridges and tunnels) on May 6, 2020 zero hours to resume tolls.

Specifically, express circulation mainly includes collection-sorting-transport-delivery and other four links, of which, one of the main costs affecting the operation of enterprises is transportation costs. During the outbreak, the Ministry of Transport has developed a nationwide toll road free of charge, so that the delivery industry’s overall transport costs have a lot of room to reduce, coupled with the oil price also fell at that time, but also to the express delivery enterprises to reduce the price of the bottom line.

This price adjustment, equivalent to the elimination of various preferential policies adopted by the outbreak, has fallen in the past few months, express prices are expected to recover somewhat. As in the affiliate disdelivery company, the headquarters announcement is only to provide a guide price, the specific price adjustment changes, but also according to the local network to decide.

The above-mentioned express companies, which make the decision to adjust prices, are more than eight chengdus of the business in terms of product structure. Therefore, this price change is mainly for e-commerce enterprise customers with a large number of shipments, and the occasional delivery of a few parcels of individual consumers, has little to do.

Domestic outbreaks coincide with the Spring Festival holiday, compared with Shunfeng, postal EMS, JD logistics and other direct operating system of express enterprises during the Spring Festival to adhere to the operation, “four-way one-way” and other outlets to join the express enterprises, the resumption of work time is generally postponed to mid-February, and affected by the epidemic prevention and control policy in some areas, in some areas of the resumption of production time is shorter. Therefore, at this stage, “four-way one-to-one” in order to get back to the market, have chosen to lower prices.

Under the combined effect of the above factors, the unit price of e-commerce express delivery in China has continued to decline in the past few months. For example, in the first quarter of this year, China’s express delivery industry as a whole has seen an increase in the increase in revenue. Statistics from the State Post Office show that in the first quarter, the total volume of business of national express service enterprises reached 12.53 billion units, up 3.2% YoY, while the total revenue of the national express service enterprises reached 153.4 billion yuan, down 0.6% YoY.

In Yiwu City, known as the “express industry weather vane”, after this year’s Spring Festival, there have been courier enterprises gave “0.8 yuan to the country” the lowest price in history. Statistics from the State Post Office show that Yiwu’s business volume grew by 71.3% in March, while single-ticket revenue was 3.48 yuan, down 10% year-on-year and down 22.5% month-on-month.

The reason for noteworthy also, because the previous wave of low prices, resulting in a lot of express end outlets complain, when there are franchisees to the interface news said that the recent local “four-way one-to-one” enterprises have further reduced the distribution fee to the end of the network, resulting in a large increase in the end of the network operating pressure.

At the end of April, due to the delivery company has been subordinate to join the network to reduce the distribution fee, increase the amount of collection tasks, the county-level network cost increase led to a huge increase in operational pressure, individual companies have a loss situation. The five express county-level outlets of Yuantong, Shentong, Zhongtong, Baishi and Yunda in Yuchuan County, Henan Province, Wannian County, Jiangxi Province, and other places, jointly decided to lower the fees paid by the townships. Local township courier outlets because of dissatisfaction with the move, announced a boycott, and suspended the pull of goods.

Therefore, from the short-term abnormal low-cost competition to restore normal prices, but also conducive to the “four-way one access” and other joining the express delivery enterprises to restore the network.

However, the interface news from Yiwu local express industry practitioners learned that,” “last year’s lowest 1 piece, this year’s low cost so much, the lowest price of 0.8 yuan, is also normal.” The price of 0.8 yuan is also to attract customers, or only large customers can get, by April has risen. “

Tongda’s strategy of grabbing the market at low prices during the outbreak worked to some extent, driving a rapid recovery in its business volume. “In addition to the small number of pieces in January, the rapid recovery of the number of pieces from mid-February, compared with previous years, there has been an increase,” a Baxter franchisee told Interface News. “

Henyep Securities transportation and logistics research shows that in the first quarter, affected by the outbreak, the main affiliated express delivery enterprises (i.e., “four-way one-to-one”) business growth slowed, while from mid-to-late March began to face greater price war pressure, profitability was suppressed. In this context, the main express companies quarterly performance is weak.