Ex-courier lifts lid on theft and fraud in China’s logistics industry

Ex-courier lifts lid on theft and fraud in China’s logistics industry

Staff Reporter

2013-08-01

A retired courier said that it has become the norm for employees in China’s delivery services industry to steal or tamper with items trusted to them to sort and deliver, while couriers work with contacts to scam the recipients out of money, reports the Guangzhou Daily. The former courier, who recently retired from his position at the Guangzhou branch of Shanghai YTO Express (Logistics) — a leading player in the delivery services industry — said that many couriers steal parts of a parcel if its packaging is broken. He added that many would open and steal from parcels if they knew that the contents were items such as moon cakes, teas or fruit. He said that many in the industry would also take high-end electronic products such as iPhones if they had the chance, which they then would replace with a counterfeit item, repackaging the parcel before delivering it to the recipient.However, the former courier said that employees seldom target small parcels, choosing instead to target big parcels that contain multiple items. Those involved in the thefts are not hindered by customer complaints, he said, as the majority of customers who refuse to accept a damaged or opened parcel will not file a complaint. The procedure of filing a complaint is time-consuming and complicated, while the compensation offered by companies is extremely low.

Courier companies are aware of the situation regarding staff members stealing from customers, as stealing has become a rule of thumb in the industry, the paper said. The basic monthly salary for couriers is only 2,000-3,000 yuan (US$330-$490) and the working hours are long.

In order to secure large amount of orders, courier companies often raise prices, increase the weight of parcels or fabricate shipping orders. Meanwhile, some couriers also profit by increasing the delivery fees, asking companies to pay 100,000-20,000 yuan (US$16,000-$32,000), even though the actual fee is around 30,000-50,000 yuan (US$4,900-$8,100).

Shanghai YTO Express said that the situation and incidents of theft have reduced in recent years, adding that some customers have complained about missing parcels, but the number of complaints have dropped significantly over the past two years.

Unknown's avatarAbout bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

Leave a comment