Zhongtong, Yuantong, Shentong, Yunda, and ZTO Intensively Adjust Prices to Offset Rising Fuel Costs

Financial Times Reporter Nie Yinghao

The ongoing conflict between Israel, Iran, and the U.S. continues to impact the global transportation system. With tensions in the Strait of Hormuz, which accounts for 20% of global oil trade, oil prices have surged above $100 per barrel. This has led to the sixth domestic fuel price adjustment of the year at 24:00 on March 23, returning to the “9-yuan era.” Market expectations suggest further increases in oil prices.

Increased Transportation Costs for Courier Companies

The sharp rise in oil prices has driven up logistics and transportation costs. Coupled with ongoing policies to curb internal competition in the courier industry, courier prices have been adjusted multiple times this year, making price hikes almost a necessity for all courier companies. On March 23, coinciding with the sixth domestic fuel price adjustment this year, five major courier companies—ZTO, YTO, STO, Yunda, and Jitu—jointly announced price adjustments. Guizhou became the first province to implement the new rates after the adjustment.

All five courier companies’ notices indicate that rising fuel costs have increased transportation expenses. To ensure healthy and stable development, and considering the companies’ rigid cost structures, starting March 23, 2026, in Guizhou Province, delivery prices will be adjusted. Customers are advised to confirm prices with local branches before placing orders. All existing inventory will be billed at the new rates.

The notices specify that the postage per label in Guizhou will increase by 0.05 yuan, with the minimum courier fee rising to 1.2 yuan per parcel. All local courier brands will implement the new prices simultaneously, with no room for differentiation.

Multiple Regions Announce Courier Price Hikes

Previously, amid efforts to curb internal competition, Sichuan Province led the way in adjusting courier prices. On March 10, Jitu, ZTO, YTO, STO, and other courier companies announced that, starting March 11, in response to or in compliance with “anti-internal competition” policies, they would adjust parcel prices across Sichuan, canceling some discounts on delivery fees. These companies synchronized price increases across Sichuan, with terminal delivery fees rising by 0.1 yuan per parcel and delivery prices increasing by 0.1 to 0.3 yuan per parcel.

Subsequently, other regions such as Yiwu, Yunnan, and Jiangxi also announced courier price hikes. Yiwu-based courier companies announced increased delivery fees, and some cities added special surcharges due to rising delivery costs, such as an extra 1 yuan per parcel for shipments to Beijing and Shanghai starting March 13. On March 17, courier companies in Yunnan, Jiangxi, and other areas issued notices to customers, announcing the removal of some discounts and price adjustments based on costs. Jiangxi also increased prices by 0.1 yuan per parcel for low-cost outlets and customers below the minimum cost threshold.

Since Q4 2025, courier industry prices have been steadily rising. For example, as of the end of February 2026, Shentong’s per-parcel price increased from 1.97 yuan last year to 2.44 yuan, a 24% increase; YTO rose about 15% to 2.4 yuan; Yunda increased about 18% to 2.25 yuan.

Industry Profitability Divergence

For the courier industry, which heavily relies on road transportation, the recent surge in oil prices may temporarily increase operating costs and lead to profitability divergence within the industry.

Huatai Securities notes that, in the short term, a $10 increase in oil prices raises per-parcel costs by approximately 0.012 yuan. Franchise courier companies mainly incur costs from delivery fees, transportation, and transfer. “Tungda” logistics costs account for about 20% of total costs. If the fleet is fully self-operated, fuel costs make up roughly 30% of transportation expenses. Overall, fuel costs account for about 6% of total courier costs.

Huatai Securities estimates that if international oil prices rise from $60 to $80–$100 per barrel, aviation kerosene and domestic diesel prices could increase by approximately 1,267 yuan and 2,534 yuan per ton, respectively. This would raise airline unit costs by about 7.3% and 14.7%, and long-distance road freight rates by about 3.7% and 7.5%. The impact on courier prices would be less than 1.5%. Due to weak demand and increased competition, road and courier companies have limited ability to pass on these costs.

For e-commerce courier companies like the “Tungda” system, the average cost per parcel was about 0.4 yuan in 2024. Assuming fuel costs account for 30%, a $10 increase in oil prices would raise per-parcel costs by 0.012 yuan. If oil prices rise from $60 to $80 or $100 per barrel, domestic diesel prices could increase by 12% and 24%, respectively, leading to per-parcel cost increases of 0.014 and 0.028 yuan, representing 0.7% and 1.3% of the parcel price.

Huatai Securities believes that leading logistics companies can partially pass on fuel surcharges to customers. However, franchise and small logistics firms face fierce price competition and excess supply, making it difficult to transfer increased costs. Customers are sensitive to logistics prices, and these companies have limited capacity to pass on fuel costs.

If geopolitical tensions escalate and oil prices remain high, long-term profitability will depend on the ability to pass costs through pricing. High freight rates and high service quality requirements enable better price transmission and profitability, while lower freight rates and price-sensitive e-commerce clients make it harder for companies to establish effective pricing mechanisms, Huatai Securities states.

Industry forecasts suggest that courier prices will continue to recover. Longjiang Securities reports that, amid ongoing “anti-internal competition” efforts, courier prices are expected to maintain the year-over-year improvement trend since Q4 2025. E-commerce courier profitability will recover, with leading companies performing better structurally. Direct-operated courier services will continue optimizing product offerings, increasing high-value services, and driving profit growth, with net profits expected to grow steadily in Q1 2026.

(Edited by: Wen Jing)

Keywords: Courier