From January to April, China's major logistics companies recorded a year-on-year growth of 7.4 per cent in their core business profit. The growth was 5.8 percentage points slower than in the first three months of this year, according to the statistical figures released by China Federation of Logistics and Purchasing (CFLP), quoted by local media China Securities Journal.
The profit of warehousing service providers climbed 13.4 per cent. Transportation service providers' increased 7.9 per cent. All-around service providers' dropped 0.2 per cent.
Among transportation service providers, road transportation service providers' profit plunged 31.3 per cent.
CFLP pointed out that the shrinking profit is a result of weak demand, and higher cost of fuel and labour.
China's slowdown economy has weakened the countries' demand for logistics services. During the first four months, China's social logistics value, the value of all logistics operations in the country, increased 10.2 per cent to CNY52.6 trillion (US$8.27 trillion), 0.7 percentage points slower than in the first quarter and 3.6 percentage points slower year on year.
Core business revenue of the logistics companies grew 15.8 per cent, 0.4 percentage points faster than in the first quarter. Core business cost increased 16.9 per cent, 1.4 percentage points faster than in the first quarter.