Increase in logistics flow

China’s logistics flow continues to grow rapidly. According to the estimation by the China Federation of Logistics and Purchasing (CFLP), the total logistics flow reached 74.8 trillion yuan (10.27 trillion USD) in 2007. This is a 25.5 percent increase compared to 2006. Additionally, the logistics demand elastic coefficient (GDP to total logistics flow) was also raised from 2.8 in 2006 to 3.2 in 2007.

Lu Jiang, chairman of the CFCP, expected that there will be more foreign competition and many more opportunities in the domestic logistics sector. However, Lu also predicted that insufficient information technology support and unadvanced transportation methods will be the major challenges for the domestic logistics companies.