How Third Party Logistics Is Driving Freight And Logistics Market In China

China is the world's second-largest economy and is a major manufacturing hub for many foreign corporations. Since its reform and opening-up 40 years ago, China has undergone a significant transformation. The nation has witnessed tremendous growth in recent decades, and so as in the Chinese logistics market.

China Freight and Logistics Market has expanded steadily in recent years however, the production stagnation during the Covid-19 lockdown has severely affected China logistics market. China is leading not only in the global logistics market but also in providing logistic solutions technologies, all due to huge China Logistics Industry Infrastructure investment opportunities and the execution of the Belt and Road Initiative (BRI), which aims to overcome "bottleneck logistics." On the other hand, "Made in China" and "Created in China" are reshaping China's international reputation for quality and service. According to the State Post Bureau, China express logistics market is gaining after the virus outburst and handled over 83 billion packages in 2020 with an increase of 30.8 % year on year.

According to the China freight and logistics market report published by Makreo Research, In terms of revenue, in 2019 the logistics industry's total revenue rose by 9% YoY to Yuan XX trillion. The contribution rate of industrial logistics demand has slowed further, while domestic logistics demand has benefitted overall China logistics industry.

Container Shortage: A critical container shortage is pushing up shipping costs and delaying the delivery of goods purchased from China. The rising cost and container shortage is affecting international shipments and inversely affecting Freight and Logistics market.

During the COVID-19 outbreak, the government realized to uplift the Logistics Infrastructure Development in China. According to the China Federation of Logistics and Purchasing (CFLP), the overall value of social logistics in China from January to February 2020 is RMB XX trillion, an 11.8% decrease from the same period last year. In these two months, China's total logistics freight volume was XX billion tonnes, a 19.8% decrease from the same period last year. The volume of road freight decreased by 24.8%, the volume of water freight decreased by 14.8%, the volume of air freight decreased by 13.8%, on the other hand, the volume of railway freight increased by 1.4%.

Disruption of Logistics Network: China's logistics capacity was severely depleted. Extensive regulations imposed by the Chinese government to combat Coronavirus not only reduce the virus's spread but also invariably cut off the transport network.

Moreover, Massive changes are on the way for the logistics market in China. It may be the best scenario, with new business opportunities arising, or it could be the worst-case scenario, with traditional models gradually being phased out. Several logistics companies in China are beginning to nourish transportation ecosystems in to provide integrated services, funding is encouraging in particular places and businesses, and the government is paying very close attention to forms of transport other than road. With the rise of "new retail" and "consumption upgrading," as well as starting to emerge digitalization, China logistics industry is also at a crossroads. In China, the demand for logistics has shifted away from purely cost-effective warehousing and transportation services to towards smart supply chain solutions.

The report published by Makreo Research and Consulting study China Logistics Market COVID-19 Impact in detail and also assess China Logistics Future Revenue. The report covers Logistics Infrastructure Development in China with a detailed analysis of all modes of transportation (Road, Rail, Sea, Air). Third party logistics and Express logistics market performance help to find the future scope of development by assessing the present growth rate.

Key Questions Answered:
What is the present scenario of China logistics market and what impact COVID-19 has left over the industry performance?

What all factors are contributing in the industry growth and what restraints are impacting industry performance?

How the industry is segmented and which segment has a dominant role to play?

How different modes of transportation are performing?

Which segment offers high growth prospects and what are the key forces?

How industry reacted to COVID-19 and what impact will it leave over industry future performance?

Who are the leading players and what is their present state of financials and business development?

To evaluate economic environment of the country and major macro-economic factors accounting for shift in the market performance.

To know more, please refer to the link https://www.makreo.com/report/china-logistics-industry-covid-19-impact-and-outlook-to-2026
Or write us at info@makreo.com
Call us at +91-9619699069

Makreo Research And Consulting

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This release was published on openPR.