China has become a global logistics power and the world’s largest logistics market, racking up 12.1 trillion yuan (US$1.76 trillion) in logistics costs in 2017, The Paper reported.
With the increase of GDP and logistics demand, it is estimated that total costs in China will be close to or exceed 13 trillion yuan (US$1.89 trillion) in 2018, according to Ni Wei, an executive director of China International Transportation and Logistics Expo.
“The total logistics cost of 13 trillion yuan has created a 13-trillion-yuan logistics market,” said Ni.
As costs are gradually rising in all aspects, logistics companies face full market competition and are having little room for reducing costs.
To survive and develop in the competition, these companies must adopt new technologies and equipment, and transform from labour-intensive to technology-intensive enterprises, Ni said.