Logistics costs increased in first eight months

Logistics costs increased in the first eight months of the year, according to a report issued by the China Federation of Logistics and Purchasing, the China Securities Journal reported on Wednesday.

The total value of goods transported by logistics companies in the first eight months was 113.9 trillion yuan ($18.1 trillion), up 9.7 percent year-on-year. Industrial goods transported totaled 103.9 trillion yuan, accounting for 91.2 percent of that total.

From January to August, total logistics costs amounted to 5.6 trillion yuan, up 11.3 percent year-on-year.

The growth of the logistics costs has exceeded that of goods transported for the three months since June. Though the growth rate of the increase is slowing down, overall costs remain relatively high.

The CFLP said that logistics services for express deliveries, everyday chemicals and medical care products have become the highlights of logistics operations, with a steady growth rate.

However, the pressure from China's economic slowdown, coupled with increasing costs and sluggish demand, had a negative effect on the profits of logistics companies.

External demand also remained weak with a slow growth rate over the past eight months. Logistics services for imported goods amounted to 7.5 trillion yuan, up 4.9 percent year-on-year, and accounting for 6.6 percent of the total goods transported.