EM ASIA CREDIT: Alibaba (BABA, A1/A+/A+) limited impact from U.S. Postal freeze
Alibaba (BABA, A1/A+/A+)
"*US POSTAL SERVICE SUSPENDS INBOUND PARCELS FROM CHINA, HK" - BBG
- A headline for now, with limited information regarding the rationale. Negative bias for spreads.
- We note that in a 2023 study compiled by the Office of Inspector General for the US Postal Service, that while e-Commerce was expected to grow by 20% annually to 2030, USPS continued to see significant declines in international inbound package volumes (-74% last 5 years as of report).
The market is highly competitive and is very much the domain of private carriers (FedEx, DHL UPS etc). I would expect the impact to be limited for China eCommerce.
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