THE LOGISTICS MARKET IN CHINA MAINTAINS A GROWTH MOMENTUM.

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THE LOGISTICS MARKET IN CHINA MAINTAINS A GROWTH MOMENTUM.

17 January 2024

With the development of infrastructure, warehouse networks, and advanced storage facilities, China continues to be one of the world's leading logistics markets, according to Xinhua News Agency.

Data from the China Federation of Logistics and Purchasing (CFLP) indicates that the average annual logistics performance index reached 51.8% in 2023, which is 3.2 percentage points higher than in 2022. Additionally, key indicators related to business volume, new order quantity, and equipment utilization rate all showed growth compared to 2022.

Domestic analysts suggest that the development trend in the logistics sector may extend until 2024, as the December 2023 logistics index increased by 0.2 percentage points compared to November 2023, reaching 53.5%, with most sub-indices falling within an expanding range.

Furthermore, the road logistics price index for December 2023 also recorded a 0.9% growth compared to the same period in 2022, reflecting overall improvements in road transport supply and demand.

This aerial photo taken on January 1, 2024, shows containers being loaded at the China-Kazakhstan Logistics Cooperation Base (Lianwan Port) in Lianyungang, eastern China's Jiangsu Province. (Photo by Wang Jianmin/Xinhua) Containers are being loaded at the China-Kazakhstan Logistics Cooperation Base (Lianwan Port) in Lianyungang, eastern China, on January 1. Photo: Wang Jianmin

According to Hu Han, an analyst at CFLP, with policies aimed at stabilizing the economy and building confidence, industrial production and consumer consumption are expected to continue recovering in 2023, boosting transportation demand. Industrial improvements combined with enhanced logistics supply structures further strengthen the industry's recovery trend.

The profits of logistics companies in Q4 2023 were also better than in Q3 and the first half of the year, with profitability metrics for small and super-small logistics companies increasing for five consecutive months.

Xinhua reports that the robust development of the logistics sector is evidence of the country's growing consumer demand. The close integration of logistics with e-commerce business activities is also a driving force for this development. Chu Chí Thành, a researcher at CFLP, notes that the pursuit of the latest innovations is a significant contributing factor to the booming logistics sector.

Furthermore, logistics related to green energy in the country remains active. In November 2023, demand for logistics related to new energy vehicles and solar panels increased rapidly, with an annual growth rate exceeding 35%.

With improved logistics infrastructure, an extensive warehouse network, and advanced storage facilities, China's logistics market has maintained its position as the world's largest logistics market for seven consecutive years, up to 2022.

Source: VnExpress