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China's logistics sector maintains steady recovery

By Zhao Shiyue | chinadaily.com.cn | Updated: 2020-05-07 15:23
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An express-delivery company resumes work in Huainan, Anhui province, on Feb 23, 2020. [Photo/Sipa]

China's logistics prosperity index hit 53.6 percent in April, up 2.1 percentage points from the previous month, and warehousing index registered 50.3 percent, presenting a month-on-month drop of 2.4 percentage points, China Federation of Logistics & Purchasing reported on April 6.

With the coronavirus outbreak coming under control and enterprises speeding up work resumption process, logistics sector witnessed a steady recovery. The huge market demand, which was suppressed by the epidemic, began to be released.

Different factors contributed to logistics prosperity, with inventory turnover index, new orders index, fixed-asset investment index and equipment utilization rate all maintaining significant rebound in April. However, the logistics service price index saw a downward trend month-on-month.

As logistic orders continuing to expand, the new orders index reached 54 percent in April, growing 4.8 percentage points compared to March. The overall business volume index also picked up, rising 2.1 percentage points to 53.6 percent.

From regional perspective, logistics business in eastern, central and western regions all experienced rapid growth, especially the central districts. The logistics activities boomed once Wuhan lifted outbound travel restrictions on April 8.

From industrial perspective, due to the prosperity of online economy, express business volume increased quickly.

As a large number of enterprises resume work and production, the logistics of bulk commodity recovered orderly, such as steel, nonferrous metals, construction materials, machinery and mineral products.

He Hui, the director of China Logistics Information Center, said the rebounds of logistics statistics showed companies held positive expectations for future. He said the logistics sector would maintain a steady increase and resume normal operations as soon as possible.

He also noted the continuous drop of logistics service price, which indicated logistics enterprises were still under huge pressure in terms of operating costs, especially the capital turnover of small and micro enterprises. Therefore, He suggested the support for companies need to be enhanced.

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