China's logistics value rises 9.6pc, but efficiency found wanting

THE total value of all logistics operations in the country increased 9.6 per cent year on year in the first 10 months of 2012 to CNY146.4 trillion (US$23.4 trillion), according to the China Federation of Logistics and Purchasing (CFLP).

While total logistics value remains high, management efficiency has not improved, reports Xinhua, an attitude reflecting an official desire to upgrade the sector to meet world standards.

Industrial product logistics value increased 10 per cent to CNY133.6 trillion. Logistics value of imported goods posted a 6.7 per cent increase to CNY9.5 trillion. Company and residents' articles grew 20 per cent while renewable resource logistics increased 10.3 per cent.

Total logistics operations value increased 11.5 per cent to CNY7.2 trillion rising 0.2 percentage points more than in the January to September period and 1.9 percentage points higher year on year.

Logistics transport, storage and management costs rose quickly with transport up 10.8 per cent to CNY3.7 trillion while storage costs grew 12.1 per cent to CNY2.6 trillion and management costs went up 13.1 per cent to CNY0.9 trillion.

In the first nine months, key logistics enterprises' main business revenue increased 20.6 per cent year on year, while business costs climbed 1.4 percentage points higher to 22 per cent. The profit margin was 4.7 per cent, while the port enterprises' profit margin was 3.6 per cent, which were both lower than that in the first eight months.