China's logistics business value climbs 9.3pc in first seven months

CNINA's logistics industry was in a slow but steady period of growth between January to July, according to the China Federation of Logistics and Purchasing (CFLP).

But at the same time, logistics service price continued to fall while operating costs kept rising rapidly. The industry is still facing challenge from "low prices, high costs", reports Xinhua.

CFLP's statistics show that in the first seven months of this year, China's total logistics value totalled to CNY109.5 trillion (US$17.3 trillion), rising 9.3 per cent year on year after removing price factors.

Value of logistics operations for industrial products went up 9.4 per cent to CNY100.4 trillion, taking up 91.6 per cent of the social logistics value total. Imported products logistics operations value grew 6.4 per cent to CNY7 trillion, taking up 6.4 per cent of the social logistics value. Agricultural product logistics value grew three per cent.

At the same time, China's total logistics costs climbed 8.9 per cent up to CNY5.3 trillion. The logistics costs needed for every CNY100 total logistics value came to CNY4.82, down CNY0.1 year on year. Storage cost increased 8.8 per cent to CNY1.9 trillion. Transport cost increased 8.6 per cent to CNY2.7 trillion. Management cost grew 10.7 per cent to CNY667.6 billion.

In the first half of this year, core business revenue of the major logistics service providers kept a fast year-on-year increase of 17.2 per cent. Core business profit margin was at 5.5 per cent. If not including port operators, the rest logistics service providers' core business profit margin averaged at 4.3 per cent, up 0.7 percentage points year on year.