China's delivery industry predicted to be close to normal by mid-March

VCG

The entire network of China's express delivery industry is predicted to return to normal by mid-March, except virus-hit Hubei Province, said Liu Jun, deputy director of the State Post Bureau on Friday.

"Transportation in China has been greatly affected by the coronavirus outbreak as the volume of passenger traffic by railway, highway, water and air plunged by 79.9 percent last month, with freight volume decreasing by 26.5 percent and the number of orders for taxis (including mobile ride-hailing ones) diving by 85 percent," Liu Xiaoming, deputy minister of transport said at the press conference.

A relief policies package has been released to encourage resumption in the transportation and logistics industries, according to Liu. Income from the transportation of major materials for virus prevention and control can be exempt from value-added tax and financial supports, while low-interest loans can be made to logistics-related services.

Also, civil aviation companies do not need to pay into a civil aviation development fund amid the coronavirus outbreak, which could alleviate the losses the aviation industry has suffered this year after the virus broke out.

"From March 1 to June 30, port construction fees applying to imports and exports will be waived, with other port charges including port security charges and cargo dues to be reduced by up to 20 percent. As of June, charges for non-tanker cargo vessels will be canceled, and the cost of railway insurance and fees on containers and freight cars will be reduced by half," Liu cited.

In addition, the government has encouraged insurance firms to lower or remove premiums for commercial vehicles, ships, and aircraft whose operations are suspended amid the epidemic.

There are nearly 3 million workers now returning to work in the postal courier industry, with the resumption rate over 90.2 percent, according to Liu Jun, adding that by mid-March, except the virus-hit Hubei Province, the entire network of the express delivery industry is predicted to almost return to normal.

"As of Wednesday, a total of 163 million pieces of necessary materials have been transported and delivered, with 20,700 vehicles shipped and 321 freight flights arranged," he said.

By Thursday, 1.7 million people had returned to work via point-to-point chartered transport. Stringent precautions were taken before the buses hit the road. Each workers received a certificate following a thorough health check. Liu Xiaoming said that workers who return via these chartered vehicles and who have shown no symptoms 14 days prior to the trip or on the way, should return to work as soon as possible, without going into quarantine on arrival.

He also addressed the control measures taken by some countries concerning Chinese cargo ships, saying that many of these ships have long passed the 14 day quarantine period upon arrival, which should clear them from the virus threat. He shared the hope that corresponding policies can be rationally adjusted, so as to benefit trade cooperation and the stability of the global supply chain.

Based on the press conference, now there are about 400,000 logistics-related entities nationwide, with more than 50 million employees. It is estimated that the total logistics volume of China in 2019 will be nearly 300 trillion yuan, and continue to rise in the future.