Bustling logistics activity points to growing economic momentum

BEIJING — China's logistics market, a high-profile indicator of economic vitality, saw progress and improvement in the past year, underpinned by steady economic recovery and new growth drivers.

The annual average logistics performance index stood at 51.8 in 2023, above the expansion-contraction line of 50 and 3.2 percentage points higher than the previous year, said the China Federation of Logistics and Purchasing.

Subindices for business volume, new orders and equipment utility rates all posted notable improvements compared to 2022, said the CFLP.

Analysts said the robust trend of the logistics sector is likely to extend into 2024 as the December 2023 reading grew 0.2 percentage point month-on-month to 53.5 percent, with most of the subindices in expansionary territory, indicating upbeat business expectations.

Echoing the brisker logistics activities, another index that tracks roadway logistics prices recorded a 0.9 percent year-on-year growth in December, amid general improvements in roadway transport demand and supply.

Hu Han, a CFLP analyst, said that with policies in place to stabilize the economy and boost confidence, industrial production and consumption performance continued to recover in 2023, which buoyed transport demand.

The country's growing industrial improvements, combined with the improving logistics supply structure, further consolidated the sector's recovery trend, Hu said.

Companies' profitability in the fourth quarter performed significantly better than in the third quarter and first half, Hu said, adding that the indices gauging operating profits of small and micro logistics firms have rallied for five consecutive months.

With its improved logistics infrastructure development, extensive warehousing networks and advanced storage facilities, China's logistics market maintained its position as the world's largest for the seventh consecutive year in 2022.

The robust logistics sector is a prime testament to the country's warming consumption demand and robust economic dynamics.

Closely linked to the country's burgeoning e-commerce business, the courier sector saw its annual delivery volume exceed 120 billion parcels for the first time.

During the annual "Double 11"online shopping spree, about 7.51 billion packages were sent across the country from Nov 1 to 16, representing a 30.9 percent year-on-year growth.

The consistent pursuit of innovation is also an important contributor to the booming logistics sector, said Zhou Zhicheng, a CFLP researcher.

In November, transport orders for equipment manufacturing and high-tech manufacturing maintained rapid growth, up 9.8 percent and 6.2 percent year-on-year, respectively, data showed.

Green energy-related logistics remained active as well. In November, logistics demand in new energy vehicles and solar cells grew rapidly, with their growth rates above 35 percent year-on-year.

Xinhua