SF Express is in talks with J&T Express to acquire a 1% to 2% stake in the Jakarta-based logistics company, according to the Chinese media outlet LatePost. 

Founded in 2015, J&T Express is known for its cheap logistics rates and it is a major logistics provider for Chinese cross-border e-commerce platforms such as Temu, Shopee, TikTok, and Shein. It has also grown with these platforms and now has a decent end-to-end network in Southeast Asia, the Middle East, and South America.

SF Express, renowned for its premium logistics service and relatively higher rates, has established a strong foothold in China but has a limited presence overseas.

With a vision of becoming one of the top three global express companies, SF Express is seeking growth opportunities in overseas markets in recent years.

Previously, the Chinese logistics giant acquired a 51.5% stake in Kerry Logistics, the second largest express company in Southeast Asia, for HK$17.555 billion in 2021.

However, Kerry Logistics has been locked in a price war with J&T Express and Flash Express. This directly led to a decline in its profitability, from a profit of HK$40 million in 2021 to a loss of HK$826 million in 2022.

Consequently, collaborating with J&T Express presents an opportunity for SF Express to expand its international reach. Furthermore, by capitalizing on its robust air network and aviation routes, SF Express can play a pivotal role in assisting J&T Express in expanding its overseas logistics routes and improving its transportation capabilities.

According to LatePost, the specific investment amount and cooperation details are still under discussion.