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FedEx offers money-back guarantee in China
( 2002-09-24 10:07 ) (1 )

World express delivery companies are racing to see who can dominate Chinese market.

FedEx Express (FedEx), the world's largest express transportation company, on Monday announced that it will offer its money-back guarantee to customers throughout China. It will be the first and only international express carrier to offer a money-back guarantee in the China market.

Under the terms of the guarantee, if a shipment arrives later than FedEx's promised delivery time, the company will provide a full refund.

This latest move comes at a time of quick expansion by FedEx's major global competitor, United Parcel Service (UPS), in China.

UPS opened two representative offices in Shenzhen and Qingdao last week, and four more offices are planned in Xiamen, Dongguan, Hangzhou, and Tianjin, for the end of this year and early next year.

The company says it plans to have 21 offices in China by the end of 2003.

The FedEx announcement follows the company's pioneering next-business-day delivery service to major Asian and North American cities in 2000.

FedEx will also enhance its services in China, especially in Southern China and the Pearl River Delta region.

For example, FedEx will upgrade the aircraft serving Shenzhen from the current DC-10 to an MD-11, which will add 30 tons in freight capacity.

"These business adjustments are aimed at providing better services for our customers in China, which demonstrates FedEx's commitment to long-term development in the market," said Eddy Chan, regional vice-president of FedEx's China and Mid-Pacific operation.

The newly launched money-back guarantee demonstrates the company's confidence in its services in China, Chan added.

Meanwhile, UPS' second quarter report showed its international business growth helped offset declines in the US domestic package business.

The company's international segment, especially its Asia-Pacific operations, paced the second quarter's results, growing substantially in excess of the market and showing a strong increase in profitability, said UPS Chief Financial Officer Scott Davis.

The company benefited from the opening of an intra-Asia air hub in the Philippines, which improved service levels within Asia and to Europe, he said.

Business in China showed a surge of 30 per cent, Davis said.

Since entering the Chinese market in 1988, UPS has seen high growth in its business volume in the country. Its sales revenue grew over 35 per cent annually since it gained the right to operate direct flight service to China in early 2001.