China's logistics companies still face heavy pressure as demand slows
2012 04 02
- Details
A CHINA Federation of Logistics and Purchasing (CFLP) study show that in January and February business had suffered slowing demand, rising costs and shrinking profits, Xinhua reports.
During these two months, China's social logistics value, the value of all logistics operations, grew 10.6 per cent year on year to CNY23.5 trillion (US$3.73 trillion), 3.9 percentage points slower. Industrial product logistics value increased 11.4 per cent, 2.7 percentage points slower. Import cargo logistics value went up 0.9 per cent, 17.6 percentage points slower.
China Logistics Information Centre's analysis points out that the slower growth in social logistics value was caused by slower economic growth and the Chinese New Year holiday still remained steady on the whole.
Meanwhile, social logistics costs, the cost of all logistics operations, climbed 12.3 per cent with transport costs increasing 11.8 per cent to CNY700 billion.
China again raised fuel prices by CNY600 per tonne, which is the sharpest increase since 2008. Commenting on this, CFLP said the fuel price hike will bring severe impact to the logistics companies, especially those offering transportation services. CFLP noted that these companies will continue to face heavy operating pressures this year.
The logistics sector survey posted on the same day show that in January, operating revenue of these companies dropped 15.6 per cent. Their core business revenue fell 4.7 per cent. Logistics industry's PMI, the price index of the industry, dropped three percentage points month to month to 48.5 per cent, indicating a high cost and low rate circumstance in the industry.
Source Shipping Gazette - Daily Shipping News
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