S.F. Holding: Asian logistics giant on the global stage
Competing with the likes of DHL, UPS, and FedEx in this global trade landscape, Asia-based S.F. Holding has grown to become a credible competitor to its western peers.
Deglobalisation and trade barriers have thrown the global supply chain into a state of disarray, posing challenges for logistics provider and their customers to navigate the myriad of regulations. Competing with the likes of DHL, UPS, and FedEx, Asia-based S.F. Holding has grown to become a credible competitor to its western peers.
As an integrated logistic provider with its own fleet of freighters and sprawling infrastructure facilities, the company can provide a highly-efficient logistics service for customers worldwide. This also allows them to differentiate their premium offerings from the more economical but less reliable model utilised by its competitors in the Asia region, contributing to the durability of their business moat. Consumers and ecommerce merchants recognise the branding of S.F, boosting the confidence in their service standards and enabling higher pricing power along the way.
This strategic focus is in part due to a pivot accelerated from the economic pain of competing in the low cost segments such as economy express delivery a few years ago. A drive towards better profitability led management to make the significant decision to exit the mass market, including the sale of Shenzhen Fengwang to Indonesia’s J&T Express in 2023.
Leveraging on its extensive relationships with many of the largest corporate customers in the world and in China, S.F. positions itself as the go-to logistics partner for both multinational corporations rejigging their supply chain and for Chinese companies looking to expand into overseas markets.
To counteract and circumvent trade tariffs, it is necessary for international companies to diversify their supply chain operations, essentially developing an intra-Asia trade network to adapt to the constantly evolving trade regulations between nations. That will play to S.F’s strengths in terms of scale and resources they possess.
In its latest earnings report published a few weeks ago, the company saw a mixed set of results with revenue still growing but profitability pressured. Most of the growth was driven by volume growth, with parcel volume increasing 33% YoY for 3Q25. With profit margin likely to stay weak and compressed for 4Q25, it will take some time for the newly-structured employee incentive program to improve organisational efficiency.
However, the more challenged business remains to be in international supply chain as customers worldwide adjust to the shifting global trade policies in the immediate term. S.F. is unlikely to step away from this market given that the long-term necessity of supply chain diversification positions them to gain market share in this stable profitable business.
Despite the near term headwinds, it is hard to ignore the strides S.F. has made in the industry. Ezhou Huahu International Airport is Asia’s first ever all-cargo airport and operates as the hub for S.F. Airlines given their stake in the airport operator. Being the major carrier, the company is developing China’s freight network and technology considerably, attracting other airlines to the airport.
Back in August 2025, a new airframe maintenance, repair and overhaul facility was opened with Singapore-based ST Engineering providing line and heavy maintenance services for both cargo and passenger aircrafts. Currently, there are around 100 freight routes with almost an even split between domestic and international routes.
With China already the fastest-growing in global aviation and harboring ambitions to be a major cargo hub, S.F. is an important player to accelerate this growth. Deepening the supply chain capabilities and network is absolutely necessary for them to further compete at the global scale. As the fourth largest integrated logistics service provider in the world vying to be in the top three, they have their work cut out for them.
