China’s Logistics Sector Gains Momentum as Industry Upgrades

Dragon Media News Desk

Industrial upgrading and resilient high-end manufacturing are supporting growth in China’s logistics sector. The total value of national social logistics reached 280 trillion yuan from January to September, up 4.9 percent from the same period last year.

The China Federation of Logistics and Purchasing said the value of industrial goods logistics rose 5.3 percent year on year, accounting for 78 percent of the growth in total logistics. Equipment manufacturing accounted for 37.6 percent, while high-tech manufacturing made up 18.3 percent.

Logistics volumes for new products also increased significantly. Shipments of smart wristbands rose 77.1 percent year on year, 3D printing equipment 62.5 percent and sensors 16.4 percent. The figures point to rapidly expanding logistics demand for new and upgraded industrial products.

The total cost of social logistics reached 14.8 trillion yuan in the first nine months, up 4.2 percent year on year. Social logistics costs accounted for 13.8 percent of gross domestic product, down 0.2 percentage points from the same period last year.

The benefits of lower logistics costs are continuing to flow into the real economy, said Liu Yuhang, the federation’s chief engineer.

Logistics demand is expected to rise sharply in the fourth quarter as the peak e-commerce season and year-end production rush get underway, Liu said. He added that high-quality logistics development would support the recovery of the real economy and help achieve the country’s annual economic and social development targets.