(Yicai Global) Oct. 11 -- China's leading courier ZTO Express Cayman Inc. [NYSE:ZTO] will raise its delivery prices on the back of increased costs, the firm said on social media yesterday. Yunda Holding Co. [SHE:002120], another Chinese courier, also said it would bump up prices.
ZTO blamed the hike on the cost of transport, labor and raw materials, and said it would adjust its prices from now on in order to improve the quality of its services, state-run China News Service reported. The notice did not disclose specific price adjustments.
Today, Yunda Express made a similar statement on its website, citing similar reasons. SF Express Co. [SHE:002352] said it would not be hiking prices when queries by news outlet Sina Finance.
In June this year, six of China's main couriers, including ZTO and Yunda, issued a joint statement advising they would be increasing delivery prices by CNY0.15 (USD0.02) per item, leading to increased operating costs at their franchised outlets.
The move comes just a month before China's famous 11.11, or Singles' Day, shopping festival, which sees a peak business volume for couriers. The hike will put an end to a trend of declining delivery prices in recent years in favor of the industry's long-term development and profitability and leading firms, a number of securities firms said.