China’s logistics cost falls to 13.8% of GDP as smart band shipments jump 77%

The China Federation of Logistics and Purchasing (CFLP) said on November 1 that the total value of goods moved by Chinese logistics reached 280 trillion yuan from January to September, up 4.9% at comparable prices, Xinhua reported. Industrial goods grew 5.3% and contributed 78% of the increase; the equipment industry’s share rose to 37.6% and high-tech to 18.3%.

Some new products stood out: logistics volume of smart bands grew 77.1%, 3D printers 62.5% and sensors 16.4%. Consumer goods logistics for businesses and households rose 2.9%.

Total logistics cost was 14.8 trillion yuan (+4.2%), equal to 13.8% of GDP, 0.2 points lower than a year earlier. According to CFLP chief engineer Liu Yuhang, the drop represents savings of more than 210 billion yuan. Industry revenue was 11.1 trillion (+4.3%) and key logistics firms’ revenue rose 6.6%, with service prices stable to slightly higher.

CSP take: Chinese domestic logistics is more efficient, but demand is concentrated in electronics and equipment, the same sectors with full factories. With the year-end peak, book freight and warehouse space early for December and January cargo. This reading is ours, not CFLP’s.