In a noteworthy reflection of economic vitality, China’s logistics market witnessed substantial progress and improvements in the past year, propelled by a resilient economic recovery and emerging growth drivers.
The China Federation of Logistics and Purchasing reported that the annual average logistics performance index for 2023 stood at 51.8, surpassing the expansion-contraction line of 50 and marking a significant increase of 3.2 percentage points from the previous year.
Key subindices, including business volume, new orders, and equipment utility rates, all exhibited notable enhancements compared to 2022, signaling a robust trend in the logistics sector.
Analysts anticipate this positive momentum to extend into 2024, as the December 2023 reading experienced a month-on-month growth of 0.2 percentage points, reaching 53.5 percent. Most subindices are in expansionary territory, indicating optimistic business expectations.
In tandem with the flourishing logistics activities, an index tracking roadway logistics prices reported a 0.9 percent year-on-year growth in December, driven by improvements in both demand and supply within the roadway transport sector.
Hu Han, an analyst from the CFLP, attributed this growth to policies stabilizing the economy, boosting confidence, and contributing to the recovery of industrial production and consumption performance in 2023.
The logistics sector’s recovery trend was further solidified by China’s growing industrial improvements and an enhanced logistics supply structure. The fourth quarter saw significant improvements in companies’ profitability, particularly in small and micro logistics firms, whose operating profits indices have seen a five-month consecutive rally.
China, with its world-leading logistics infrastructure development, extensive warehousing networks, and advanced storage facilities, maintained its position as the world’s largest logistics market for the seventh consecutive year in 2022.
This robust logistics sector serves as a testament to China’s increasing consumption demand and robust economic dynamics.
The courier sector, closely linked to China’s flourishing e-commerce industry, achieved a milestone as its annual delivery volume surpassed 120 billion parcels for the first time. During the annual “Double 11” online shopping spree, the country witnessed a remarkable 30.9 percent year-on-year growth with approximately 7.51 billion packages sent across the nation from Nov 1 to 16.
Zhou Zhicheng, a CFLP researcher, highlighted the crucial role of innovation in the logistics sector’s success. Transport orders for equipment manufacturing and high-tech manufacturing experienced rapid growth, while logistics demand in green energy-related sectors, such as new energy vehicles and solar cells, also surged with growth rates surpassing 35 percent year-on-year in November.