China Post Express Logistics announced on March 24 that a quota system will be temporarily applied to ordinary small packages as the company lacks the necessary transport capacity due to the international spread of COVID-19.

China Post will also limit the daily number of ordinary small packets. Epackets will only be offered to major customers with large capacity, but the number of these will be limited as well. In addition, small package services for e-commerce platforms will be temporarily suspended nationwide.

Delivery services for other cross-border businesses will operate normally. This includes international EMS, international packages, epackets, international tracking packets, and internationally registered packets.

In an interview last week, a logistics provider in Fujian province said that the postal service in Fujian has stopped receiving goods except from some large-scale customers. They can share 7,000 places each day to send goods in Xiamen and 7,800 in Quanzhou.

Moreover, as most airlines have significantly reduced their capacity, some of China Post's overseas distribution services have been affected. Customers can contact their local China Post International Packet service center for relevant information.

Most of China Post's small packets are now being exported by sea.

According to a cross-border e-commerce seller, the decline in orders on e-commerce platforms is probably related to the current logistical situation.

Due to rising logistical costs, many sellers have been forced to increase prices. However, some e-commerce platforms have placed restrictions on seller markups, and some sellers would prefer to halt business rather than lose money.

Cross-border cargo shipments are expected to drop significantly in the next one to two months, aside from medical protective materials and daily necessities.

The national government has been paying close attention to the cross-border logistics situation. During the State Council's executive meeting chaired by Chinese Premier Li Keqiang on March 24, China announced that it will take further steps to boost international airfreight capacity and stabilize supply chains.

"With the (COVID-19) pandemic rampaging across the world and air passenger services dwindling worldwide due to the outbreak, cargo volume carried by passenger planes has plummeted and shipping costs have risen significantly," Li said.

"Over the course of the outbreak, weak links in air transport capacity have been exposed. We must work to increase both international and domestic air transport services and raise international airfreight capacity to avert potential shocks to supply chains and facilitate the resumption of business operations," he said.

The meeting called for stronger international collaboration to keep international express delivery and other airfreight services up and running. Policy support will be provided to international cargo flights during the outbreak. Airfreight carriers will be provided support to expand their fleets by bringing in more cargo jets through lease or purchase. The role of the market will be fully harnessed and all airfreight companies will receive equal support regardless of ownership type. The merger and reorganization of airfreight and logistics firms will be encouraged, and express delivery companies will be supported in expanding air services and overseas operations.

"We must plan ahead and harness the initiative of logistics firms in developing an international air transport network," Li said.

It was decided at the meeting that air cargo networks should be strengthened. Time restrictions for cargo flights will be lifted at airports with strong cargo-handling capacities.

Where conditions permit, international hub airports in Beijing, Tianjin, Hebei province, the Yangtze River Delta, Guangdong province, Hong Kong, Macao, Chengdu, Sichuan province and Chongqing will provide 24/7 customs clearance services and improve efficiency in security checks and clearance processes.

The government's policies are expected to help strengthen cross-border shipping amid the outbreak.

Cainiao Network, the logistics arm of e-commerce giant Alibaba, also said they will devote nearly 200 chartered flights to helping global businesses resume operations that have been disrupted by the novel coronavirus epidemic.

Air cargo transportation services will become available in more than 100 countries and regions between now and the end of April, as the company claims it is one of the few global logistics networks whose operations have not been severely affected by the contagion.

Cainiao Network has already launched many dedicated flights from Chinese cities to multiple international destinations, including from Hangzhou to Riga, Latvia, Moscow, Russia and Liege, Belgium, from Harbin to Yekaterinburg, Russia, and from Hong Kong to Liege, Belgium, Riyadh, Saudi Arabia, and Tel Aviv, Israel.