Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Overview on Chinese Logistics Industry 2010 - Research of China Research and Intelligence shows that the total value of social logistics goods in 2010H1 reached CNY 25.90 trillion, increasing by 20.8% YOY. This indicates that the logistics demand, driven by the economic growth, accelerates its pace of recovery.

In terms of composition, the logistics value of industrial products hit CNY 23.4 trillion, rising by 19.6% YOY, accounting for 90.2% of the total. This is an important factor driving forward the total logistics amount in 2010H1. The total logistics value in imported goods turned from decreasing position into increasing position, reaching CNY 2.1 trillion. The total logistics value in agricultural products, in renewable resources, and in articles of organizations and residents increased by 3.8%, 27.4% and 14.4% respectively.

In particular, the total social logistics expenses in 2010H1 reached CNY 1.46 trillion, rising by 22.1% YOY. The ratio of the expenses and GDP was 18.2%, unchanged from a year earlier, indicating that the social logistics operation efficiency has been improved. (Source:

Modern logistics begin to extend its development from Pearl River Delta, Yangtze River Delta regions to Bohai Bay Rim and Central and West China. Rural logistics service system is gradually taking shape. The development of logistics plays an increasingly important role in improving the quality and efficiency of national economic growth.

Due to the financial crisis at present, China’s logistics industry is severely affected. The Central Government has launched some supporting policies and plans to propel domestic demand, but in general, the volume in import and export freight forwarding companies decreased by more than 40%. Some small transport companies with purely domestic logistics are already in a very difficult situation and the volume in larger companies has decreased by about 20% as well. However, this gloomy situation will soon recover with the disappearance of the economic crisis. China is a production base, a raw material supply base, and also a large consumer, so the prospect of the logistics industry in China is fairly good. Meanwhile, the low threshold of Chinese logistics industry is easy to cause vicious competition. Therefore, CRI forecast that China’s logistics industry is faced with both opportunities and challenges.