Logistic Cost Accounting for 18% in GDP

www.chinatrucks.com: According to statistics, in the first half year, China’s total social logistics value is 93.1 trillion yuan, up by 9.1%. The logistic added value is 1.8 trillion yuan, up by 7.4%.

Seen from business types, bulk commodities have low demands: logistics for iron & steel, coal, cement decline. Logistics for fast moving consumption goods, household appliances and people’s livelihood maintain rapid growth with a rate over 20%.

Professor Wang Xianqing from Guangdong Business College believes that the high logistic costs are due to the following reasons: first, various fees in logistic and transportation, such as toll charge, management fee, certification fees, and so on; second, high oil price and third, various penalties on vehicles.

By contrast, in developed countries, the logistic cost takes up only 10% in GDP, almost half of that in China.

Secretary-general of Guangdong Logistics Industry Association Ma Renhong says that the high logistic cost will play negative impact. The increase in costs of manufacturing industry and raw materials will inevitably cause to the rise in price of commodities through industrial chain. Moreover, high oil price, toll charge and labor cost leave companies with few profits, and this part will transfer to the price of commodities.

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