The China Freight And Logistics Market size is estimated at USD 1125.98 billion in 2023, and is expected to reach USD 1537.08 billion by 2029, growing at a CAGR of 5.32% during the forecast period (2023-2029).
- Road is the Fastest-growing mode of transport for the China Freight And Logistics Market. The road is the fastest-growing segment, as China is experiencing insatiable demand for road transportation services.
- Among all the Destination Types, Domestic is the largest contributor to the China Freight And Logistics Market. The domestic segment is the largest segment by destination type, supported by the wholesale and retail trade end-user segment, which had a share of 61.2% in 2022.
- The growth rate of Manufacturing segment indicates that it is the largest End User Industries. Manufacturing is the largest end-user segment supported by the growth in the manufacturing sector in China, which rose by 19.84% YoY in 2021 and reached USD 16.69 trillion.
- Non-Temperature Controlled is the largest Temperature Controls in the China Freight And Logistics Market. The non-controlled segment is the largest segment in China. It was supported by domestic online retail sales, which reached USD 1.69 trillion in 2021, representing a growth of 12% YoY.
- The Fastest-growing temperature control for the China Freight And Logistics Market is Temperature Controlled. The controlled segment is boosted by the food and meat industry. The food and meat markets are expected to grow and register CAGRs of 9.49% and 8.81%, respectively, during 2022-27.
Infrastructure development leading to the growth of the logistics market
- China is experiencing insatiable demand for transportation and logistics services—so much so that dedicated service providers are struggling to keep up. This is causing some of China’s biggest retailers to strike out on their own with in-house logistics. It is certainly not because of a lack of infrastructure that China’s logistics industry is struggling to meet its potential. The country is ranked first in the world in terms of ton-kilometers of freight, at 2917.4 billion, as well as inland water transportation, with 110,000 km of navigable waterways.
- In China, trucks carry more than 80% of the nation’s goods. However, the trucking industry remains highly fragmented and inefficient. Individuals own more than 90% of trucks on the road, and trucks stand empty 40% of the time. For instance, Truck Alliance is currently hosting 70,000 transactions—equivalent to USD 110 million in shipping costs each day through its app and website. With the online marketplace, truck drivers are able to increase their loads and generate more income, and shippers can reduce overall shipping costs.
- Over the past decade, China’s transportation infrastructure network, including road, rail, waterway, and airport systems, has undergone unprecedented growth in terms of length and quality. As of 2021, the length of China’s highways exceeded 169,100 kilometers. In the same year, China expanded the length of high-speed railroads to 40,000 kilometers. Regarding air transport infrastructure, the Civil Aviation Administration of China recorded 248 civil airports in 2021, which are fully open for scheduled flights. China’s water transport infrastructure was also strengthened with 2,207 and 452 berths of 10,000 tons deadweight and above in its coastal and inland river ports, respectively.
China Freight And Logistics Market Trends
Transportation sector is recovering with government policies
- The Chinese logistics sector, reeling from the COVID-19 pandemic, is eyeing a stepped-up rebound as the government’s supportive policies take effect and more favorable policies follow. According to data from the China Federation of Logistics and Purchasing (CFLP), the logistics performance index, which tracks business volume, new orders, employment, inventory turnovers, and equipment utility rates in the sector, was recorded at 49.3% in May 2022, up by 5.5% points from the previous month.
- E-commerce logistics activities also witnessed a business reboot in May 2022, with the index rising by 2.1 points to 104.3 points from April. China has rolled out a raft of policies, such as for removing bottlenecks in transportation and reducing the burden for logistics enterprises to maintain logistics flows. Shanghai launched an action plan to speed up economic recovery by releasing measures, including stabilizing industrial and supply chains in the Yangtze River Delta and smoothing domestic and international logistics and transportation channels.
- Cities, including Beijing, have established a whitelist mechanism to secure the delivery capacity of fresh produce suppliers and support the resumption of work for key companies. Financial support has been funneled to logistics enterprises across China to reduce difficulties. China emphasized further smoothing transportation and logistics to ensure the operation of market entities and stabilize the economy. The Industrial and Commercial Bank of China’s Shandong branch extended over USD 1.19 billion of loans to support the logistics sector in 2022.
China Freight And Logistics Industry Overview
The China Freight And Logistics Market is fragmented, with the top five companies occupying 8.43%. The major players in this market are China Ocean Shipping (Group) Company (COSCO), Deppon Logistics Co., Ltd., Deutsche Post DHL Group, SF Express and Sinotrans Limited (sorted alphabetically).
China Freight And Logistics Market Leaders
China Ocean Shipping (Group) Company (COSCO)
Deppon Logistics Co., Ltd.
Deutsche Post DHL Group
SF Express
Sinotrans Limited
Other important companies include DB Schenker, Dimerco, DSV A/S (De Sammensluttede Vognmænd af Air and Sea), Expeditors International, Kerry Logistics, Kuehne + Nagel, United Parcel Service, YTO Express.
