Logistics industry, in China and around the world, has entered a stage of fast growth, according to a new market report from research firm Research and Markets.
Logistics-related spending in 2002, the most recent year studied, amounted to US$23 billion (190 billion Yuan). In comparison, the U.S. spent $936 billion on logistics in 2003.
Logistics costs accounted for about 20% of GDP (by way of comparison, logistics costs for the U.S. represented 8.5% of GDP in 2003). 2002 saw a flourishing third-party logistics (3PL) business in China, with quite a number of state-owned logistics enterprises engaged in it.
In the past three years, 70% of the logistics service providers experienced a 30% annual increase in business.
Since China became a WTO member, foreign logistics providers have entered into China one after another, with 2/3 of the world’s top 10 retailers now operating in China, with their purchase centers established.
The annual growth rate in the 3PL market could reach 25% in the years from 2002 to 2005.
China is expected to come up with a set of new rules and policies to clean up industrial monopolies, excessive administrative intervention and regional protectionism.
Industrial standards and regulations need to be implemented to improve efficiency in logistics companies, though the process could take several years.
Beijing is expected to become a major delivery and logistics base for the Asia-Pacific regions.