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Research Report on Chinese Logistics Industry, 2009-2010

In 2008, Chinese total social logistics value reached RMB 89.9 trillion (USD 12.84 trillion), rising by 19.5% YOY. It remained increasing significantly, though the growth rate fell by 6.7% compared with 2007.

 

Among Chinese social logistics, total industrial logistics value was RMB 79.86 trillion with a YOY growth of 20.8%. It accounted for 88.8% of Chinese total social logistics value, acting as the principal promoter for the growth of Chinese total social logistics value. Total import logistics value reached RMB 7.86 trillion, growing by 8.2% YOY and accounting for 8.7% of Chinese total social logistics value. Total values of agricultural product logistics, renewable resource logistics and logistics goods by organization and residents rose by 17.6%, 3.8% and 14% respectively.

 

In 2008, Chinese total social logistics costs reached RMB 5.4542 trillion, growing by 16.2% YOY. However, the growth rate dropped by 4.4% compared with 2007. Total social logistics costs took up 18.1% of Chinese GDP, falling by 0.1% compared with 2007.

 

Among Chinese total social logistics costs, transport costs were 2.8669 trillion RMB, increasing by 13.2% YOY. The growth rate decreased by 6.4% compared with 2007. It accounted for 52.6% of the total social logistics costs, reducing by 1.8% compared with 2007. Decreases on the growth rate and on the proportion of the total social logistics costs suggested that demands for logistics had been cut back.

 

Storage costs totaled RMB 1.8928 trillion, rising by 21.8% YOY. However, the growth rate dropped by 0.7% compared with 2007. It accounted for 34.7% of Chinese total social logistics costs, growing by 1.8% compared with 2007.

 

Administrative costs totaled RMB 694.5 billion, increasing by 14.3% YOY and accounting for 12.7% of Chinese total social logistics costs. The growth rate fell by 5.6% compared with 2007.

 

In the first half of 2009, Chinese social logistics value came to RMB 42.9642 trillion, falling by 0.8% YOY. The declining rate dropped by 2.5% compared with Q1 of 2009. If price reduction were not considered, the total value rose by 6% YOY and the growth rate increased by 4.5% compared with Q1 of 2009.

 

Among Chinese total social logistics value, the total industrial logistics value sped up increasing stimulated by the investment. It rose by 1.8% YOY, reversing the declining in Q1. The total industrial logistics value took up 91.2% of Chinese total social logistics value, rising by 2.3% YOY and acting as the principal promoter for the growth of Chinese total social logistics value. Chinese total agricultural product logistics value grew by 0.2% YOY with the same growth rate of Q1. It accounted for 1.5% of Chinese total social logistics value with a slightly higher YOY increase. The total import logistics value fell by 26.9% influenced by the global financial crisis and the declined foreign trade. However, the decrease rate reduced by 7% compared with Q1. It took up 6.7% of Chinese total social logistics value, with a YOY reduction of 2.5%. The decline of the total import logistics value reduced the total social logistics value by 1.8%.

 

In March, 2009, China’s State Council issued the Restructuring and Rejuvenation Program of Logistics Industry, promoting the development of logistics enterprises through a series of policies.

 

Chinese total social logistics costs reached RMB 2.5 trillion in the first half of 2009, rising by 4.8% YOY. The growth rate increased by 1.5% compared with Q1. It accounted for 18% of Chinese GDP, falling by 0.4% compared with 2008.

 

Among Chinese total social logistics costs, transport costs came to RMB 1.3 trillion, increasing by 3.4% YOY and accounting for 52.4% of the total social logistics costs. The growth rate rose by 1% compared with Q1. Reasons for the slight increase of the growth rate of transport costs are as follows: first, transport demands remained stable and began to rise. Since March, 2009, Chinese cargo transport volume, cargo turnover and cargo throughput in ports have recovered to some extent pushed by the increased transport volumes of ores and crude oil in the foreign trade, and coals and mine construction materials in domestic trade. Second, significant rise of the oil price had increased transport costs directly

 

Storage costs added up to RMB 0.9 trillion, rising by 6.3% YOY and accounting for 35.4% of the total social logistics costs. Its growth rate grew by 2.3% compared with Q1 of 2009. Logistic business entered a stable recovery period promoted by the increased demands. Among the storage costs in the first half of 2009, the growth rates of distribution processing costs, warehousing costs, insurance costs and interests rose by 2.7%, 0.6%, 2.6% and 2.5% respectively compared with Q1 of 2009. Logistics distribution costs and packing costs suffered from YOY decreases, whose decline rates were both 6% compared with Q1. Information costs and service costs grew by 2.1% instead of dropping by 3.4% YOY in Q1.

 

Administrative costs added up to RMB 0.3 trillion, rising by 6.5% YOY. It was higher than that in Q1 by 0.4% resulting from the improvement of wages. Administrative costs took up 12.2% of Chinese total social logistics costs, increasing by 0.8% compared with Q1.

 

In the first half of 2009, fixed asset investment of Chinese logistics industry reached RMB 924.4 billion, growing by 61.8% YOY. The growth rate was higher than Chinese urban fixed asset investment in the same period by 28%.

 

Among the fixed asset investment, investment from Chinese transportation industry totaled RMB 669.1 billion, increasing by 65.3% YOY. The growth rate hit a new high in recent years, rising by 61% compared with the first half of 2008 and by 13.5% compared with Q1 of 2009. Investment from Chinese storage and post industry came to RMB 71.2 billion, growing by 78.1% YOY. The growth rate rose by 30.9% compared with the first half of 2009 and by 12.7% compared with Q1 of 2009. Investment from Chinese trading industry added up to RMB 184.1 billion, rising by 50% YOY. The growth rate increased by 28.7% compared with the first half of 2008 and by 6% compared with Q1 of 2009.

 

The global financial crisis has influenced Chinese logistics industry to some degree. Yet, the Development prospects of Chinese logistics industry remain optimistic encouraged by the stimulating policies from Chinese central government.

 

Through this report, readers can acquire more information:

- Current situation of Chinese logistics industry

- Development of Chinese industrial logistics

- Development of Chinese commercial trading logistics

- Development of Chinese railway logistics

- Competition in Chinese logistics industry

- Main logistics enterprises in China and their operation

- Current situation of the third-party logistics in China

- Investment opportunities in Chinese logistics industry

- Prediction on the development of Chinese logistics industry

 

Following parties are suggested to buy this report:

- Highway, railway and air transport enterprises

- Chinese local logistics enterprises

- Foreign-funded logistics enterprises concerning Chinese logistics market

- Ports, airports

- Storage enterprises

- Investors concerning Chinese logistics industry

- Researchers concerning Chinese logistics industry

- Other persons concerning Chinese logistics industry

 

 

Source: China Research and Intelligence

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Eileen Gu

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