A Chinese think tank has predicted the total value of the logistics industry in China will approach CNY 280 trillion (USD 43.5 trillion) in 2018, an increase of 6.5 per cent year-on-year.
Rising consumerism and continuing development of the high-end manufacturing industry will continue to drive demand for logistics services, according to a report released by the Center for Forecasting Science under the Chinese Academy of Sciences last week, as reported by Xinhua.
As a result of this demand, logistics facilities and equipment will continue to be upgraded alongside the injection of more IT which will enhance the efficiency of the industry, the report said.
The report also noted the expected total revenue of the logistics industry will exceed CNY 9 trillion in 2018, while the total costs within the industry will reach CNY 12 trillion.
The report said investments in transportation, warehousing and postal industry will maintain a growth rate of 10 per cent in 2018. In the first 11 months of 2017, the total value of the logistics industry totalled CNY 229.9 trillion, an increase of 6.7 per cent year-on-year, the report said.
Much of the country’s logistics growth is being driven by its surging e-commerce market, with couriers delivering over 100 million parcels each and every day last year. The State Post Bureau said that its total e-commerce business generated CNY 976 billion (USD150.2 billion) during 2017, 32 per cent higher than 2016.