Asian Courier Giants SF and J&T Eye European & US Markets, Says ATM Founder

On January 19, it was reported that China’s leading express delivery company, SF Holding, along with its Indonesian partner J&T Global Express, are actively exploring growth opportunities in European and North American markets, according to an investor involved with ATM Capital and J&T.

“The express delivery sector in Europe, fueled by the expanding e-commerce industry, remains largely underdeveloped,” said Qu Tian in an exclusive interview. He added that the U.S. market also offers considerable potential. Apart from Amazon’s in-house logistics fleet, most other courier companies focus mainly on business-to-business shipments, providing limited express options at premium prices.

There is a noticeable shortage of independent third-party delivery companies dedicated solely to e-commerce in the U.S., with only a few small players operating in this space, Qu pointed out.

Qu believes that SF and J&T could compete against established logistics giants like UPS in Europe and North America. “UPS mainly focuses on domestic deliveries within the U.S. and international cross-border shipments, but it has little to no local delivery infrastructure outside of the United States,” he explained. “This gives SF and J&T a chance to expand their presence in these markets, and they might even surpass UPS in the future.”

Regarding the expansion of Chinese logistics firms overseas, Qu noted that these companies are global leaders in technological innovation and management practices. Even in regions with high labor costs, such as Europe and North America, there are opportunities to cut costs and boost competitiveness through economies of scale and automation.

Industry expert Zhao Xiaomin highlighted that Chinese firms have a significant edge in technology, including advancements in automated sorting systems and big data analytics. In the era of artificial intelligence, Chinese logistics companies excel in data management capabilities and can better integrate with e-commerce platforms like Temu, Shein, and Shopee to enhance service synergy.

However, Zhao also pointed out the unique challenges facing Chinese logistics companies abroad. They must carefully navigate local laws, cultural norms, labor policies, and data security concerns. Additionally, they should avoid merely copying the highly competitive and aggressive strategies often seen in China’s domestic market.

On January 14, SF and J&T announced a partnership valued at HKD 8.3 billion (approximately USD 1 billion). Under this agreement, SF will purchase 822 million newly issued Class B shares of J&T at HKD 10.10 (roughly USD 1.30) each, acquiring a 10% stake. Meanwhile, J&T will buy 226 million new SF shares at HKD 36.74 (about USD 4.71) each, representing a 4.3% interest.

Qu explained that the two companies have maintained a strong, long-standing relationship characterized by close collaboration. They offer complementary strengths, especially in international operations. SF has a fleet of over 100 aircraft dedicated to cross-border logistics, while J&T Express has developed comprehensive delivery networks and localized advantages across 13 countries.

The future strategic partnership envisions SF leading in cross-border services, with J&T managing local last-mile delivery operations, according to Qu.