Putting logistics at the heart of commerce

UPS had expanded urban express services to 19 first- and second-tier cities in 2013 and expects to reach 33 cities by the end of this year. The company operates 208 weekly flights connecting China to the US, Europe and destinations across Asia.

"Our healthcare logistics service will be connected with inner-city express services in the future along with a rise of our domestic capability in China," said Davis.

As the US companies step up their activities by setting up more air routes and cargo hubs in China, Deutsche Post DHL hasn't just relocated two giant pandas more than 8,000 km from Chengdu to Brugelette, Belgium, using a Boeing 767 freighter aircraft operated by DHL Express in February, but also bankrolled new strategies to retain and grow its market share from China-Europe trade by railway.

Couriers' business soars with e-commerce's rise

DHL launches temperature-controlled service

DHL Global Forwarding, the air, rail and ocean freight specialist of DHL, formed a new partnership to develop rail forwarding services on the China-Europe rail route with a preparatory committee of the United Transport and Logistics Co in March.

UTLC is expected to be established later in 2014 as a joint-venture partnership between OJSC Russian Railways, JSC National Co Kazakhstan Temir Zholy and State enterprise Belarusian Railway. It will operate as an integrated provider of logistics and container rail transportation services between Europe and China.

Steve Huang, CEO, DHL Global Forwarding China, said the potential for rail freight growth between Asia and Europe is huge but to grow it successfully requires high-level partnerships and efficient network operations.

"Our partnership leverages both groups' strengths to accelerate the development of rail forwarding services on the China-Europe-China route with UTLC providing all rail services in Russia, Belarus and Kazakhstan and DHL providing third-party logistics and door-to-door delivery," Huang said.

DHL introduced the first temperature-controlled China-Europe rail service to undertake the fast-rail connection between China and Europe in January. The service starts in Chengdu and runs along China's West rail corridor to DHL's intermodal hub in Malaszewicze and Lodz, Poland.

The service will provide an all-year multi-modal shipping solution for temperature-sensitive European products, such as Dutch dairy products and French wine, to China, which was previously unable to use the fast and cost-effective transcontinental West rail corridor, especially during winter and summer.