China’s logistics sector has recovered steadily during the end of the third quarter this year, data released by the China Federation of Logistics & Purchasing (CFLP) revealed.
The CFLP data also revealed that total logistics revenue during the first nine months of 2020 recorded a 2 percent year-on-year growth to reach $30.16 trillion.
The logistics sector was one of the worst affected by the coronavirus pandemic, as China sealed its borders and cancelled all economic activities to curb the spread of the virus.
The logistics of industrial products grew by 5.8 percent in the third quarter. During the first quarter, when lockdown measures were in place, the segment recorded a drop of 8.4 percent in the first quarter. However, it rebounded by 4.4 percent during the second quarter.
The recovery is supported by the strong growth of the Chinese manufacturing sector, especially with hi-tech products and the surge in ecommerce activities. The report further revealed that around 5.6 billion parcels have been delivered between January and September, which is an increase of 27.9 percent year-on-year.
Recently, real estate private equity firm Gaw Capital Partners formed a joint venture with Chinese delivery firm Manbang Group to develop smart logistics properties and facilities across China.
Humbert Pang, managing principal and head of China at Gaw Capital said in a statement, “The rise of the consumer class helped by increasing disposable incomes, in addition to continued upgrades of telecommunication technology like 5G is leading to a new waveof demand for logistics, not only in Tier-1 cities but also in emerging cities in China.”