The world's fourth largest third party logistics service provider CEVA Logistics has published a report on the operation of China's logistics industry this year, which predicts that China will become the largest logistics market in the world by 2016 and shows that its logistics costs accounts for 18 per cent of GDP, almost twice that of Europe and America.
The report points out that China's domestic logistics is facing a number of challenges including high cost, credibility of the local logistics companies and service quality, Xinhua reports.
CEVA China vice president Martin Thaysen said the development of the country's logistics industry will gather speed in the coming 10 years. But to maintain its international competitiveness, China's logistics industry must lower costs and add value.
Mr Thaysen said China's investment in infrastructure and its toll reduction policies have helped industry. Manufacturers like Lenovo, Huawei and Shanghai Automotive Industry Corporation are also enhancing supply chains. But low truck use and loose connections between of different types of transport result in overly high inventory build up.
Mr Thaysen said Beijing has rolled out measures to improve logistics efficiency and lower costs. He hopes there will be more of such measures in the future, including standardising customs clearance in different regions to enhance efficiency.