Logistics growth driven by smart systems

Last mile, reconfigured

The most visible changes, however, are unfolding on the streets.

Zhang Fan, the courier who delivered China's 180 billionth parcel last year, serves more than 2,000 households in a Shenzhen neighborhood. Before unmanned vehicles were introduced, he traveled nearly six kilometers each way, four times a day, just to collect parcels.

"Now, the vehicles bring packages to a transfer point a few hundred meters away," Zhang said. "I can focus more on deliveries, talk to customers and collect outgoing parcels."

At ZTO's sorting hub in Tonglu, Zhejiang province, eight autonomous vehicles supplied by Neolix have been put into regular operation. According to Tang Rong, the facility's manager, the vehicles have increased overall site efficiency by about 70 percent while significantly reducing labor costs.

Each vehicle can handle the workload of roughly three drivers and operate around the clock. A typical 60-kilometer run costs about 15 yuan in electricity, compared with at least 50 yuan in fuel for a conventional vehicle.

"The technology allows people to focus on more value-added tasks, especially last-mile delivery," Tang said.

The hub plans to expand its autonomous fleet this year.

Even though the technology is ready, one major bottleneck is policy and regulation, and large-scale deployment depends on regulatory clarity, particularly access to public roads.

"Temporary obstacles are technical problems that can be solved," said He Jianfang, a product manager for JD's unmanned delivery vehicles. "The bigger challenge is policy — who gets the right to operate, and where."

Shenzhen testing ground

Shenzhen has emerged as a testing ground for what an even more automated delivery ecosystem might look like.

The city has deployed 180 unmanned vehicles in the postal and parcel sector, capable of handling more than 100,000 parcels a day, according to Liu Xiaoqing, deputy head of the office of the Shenzhen Postal Administration.

Over the past year, companies have invested more than 150 million yuan to upgrade sorting equipment and security systems. Drone delivery has expanded rapidly, with eight operational bases and more than 500 routes in service.

In parts of the Guangdong-Hong Kong-Macao Greater Bay Area, same-city deliveries within two hours — and intercity deliveries within three — have become routine.

Nationally, drones are used in hundreds of pilot applications, particularly in rural and mountainous regions where traditional delivery is costly and slow. More than 450 drones transport close to four million parcels annually, according to official data.

Rather than prescribing specific technologies, regulators have focused on creating room for experimentation, allowing companies to test new delivery models while gradually addressing concerns around safety, airspace and road access.

Beyond speed

China has led the world in annual parcel volume for the past 12 years. During the past five years alone, the industry's annual parcel count rose from just over 80 billion to nearly 200 billion, accounting for more than 60 percent of global courier growth. Per-capita parcel usage has climbed from 59 in 2020 to 141 in 2025.

This year, the sector is expected to handle about 214 billion parcels, maintaining steady growth even as broader economic growth is expected to slow.

For policymakers, the integration of AI into logistics has become a way to sustain that momentum without relying solely on labor or expansion. For companies, it has become a matter of survival in an industry where margins are thin and expectations are relentless.

The record-setting parcel delivered in Shenzhen attracted little notice from its recipient. But its route — planned, adjusted and executed largely by intelligent systems — offers a glimpse of how China's parcel network is evolving, quietly and at scale.

luowangshu@chinadaily.com.cn