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Huawei reviews FedEx contract

by on28 May 2019


Blame Tom Hanks

Huawei is reviewing its relationship with FedEx after the US  package delivery company diverted two parcels destined for Huawei addresses in Asia to the United States and attempted to reroute two others.

Two packages were sent from Japan and addressed to Huawei in China to the United States, and the company attempted to divert two more packages more from Vietnam to Huawei offices elsewhere in Asia, all without authorisation.

Huawei showed FexEx’s tracking records as proof. It said that the four packages only contained documents and “no technology”.

While Huawei has not said why it thought the packages were diverted, the implication is that important commercial documents sent via FedEx were not delivered to their destination, and instead were either diverted or were requested to be diverted to FedEx in the United States was some form of spying.

Joe Kelly, a spokesman for Huawei, said that the incident undermines confidence in FedEx and it will review its logistics and document delivery support requirements as a direct result of these incidents.

FedEx spokeswoman Maury Donahue said the packages were “misrouted in error” and that FedEx was not requested to divert them by any other party.

“This is an isolated issue limited to a very small number of packages”, said FedEx, referring to the four parcels affected. “We are aware of all shipments at issue and are working directly with our customers to return the packages to their possession.”

The two packages originating from Hanoi on 17 May, destined for Huawei’s Hong Kong and Singapore offices, were held up after arriving in local FedEx stations in Hong Kong and Singapore on 21 May for “delivery exception”.

According to FedEx’s website, the status “exception” means an unexpected event is preventing delivery of a package, for example, a customs delay, a holiday, or no one being available to accept delivery. FedEx declined to give details on what the exception was in this case.

According to Huawei, a FedEx customer service representative in Vietnam replied to its inquiry on 22 May when two expected packages did not arrive on time, saying: “Please be informed that FDX SG received notification from FDX US to hold and return the package to the US. Hence, the shipment is not delivered to the consignee and now being hold at FDX station and under process, to RTS it (return to sender).” 

Huawei said it has lodged a formal complaint with China’s postal regulator, which it said is investigating the incident.

Last modified on 28 May 2019
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