China's logistics activity hits 2024 high in December

BEIJING -- China's logistics sector activity reached its highest level of 2024 in December, buoyed by supportive policies and market dynamics, industry data showed Friday.

The index tracking prosperity of the country's logistics market climbed to 53.1 percent, representing an increase of 0.3 percentage points from November, according to the China Federation of Logistics and Purchasing.

Total logistics volume index rose for the fifth consecutive month and all regions showed balanced growth in business volume, with the eastern region registering the most significant rise, the data showed.

December saw increased logistics demand across various industrial sectors, including electrical machinery, semiconductors, communication equipment, transportation equipment and new energy vehicles.

Consumer spending potential continued to materialize, with e-commerce demand remaining stable. Road, water and multimodal transport sectors all posted month-on-month growth in business volume.

Meanwhile, rail, air and postal express services maintained high prosperity levels, with their business volume indices staying above 55 percent.

According to the China Federation of Logistics and Purchasing, the second half of 2024 witnessed strengthened policy implementation, effectively stimulating demand across supply chains. Key indicators such as total business volume, inventory turnover and employment showed continuous improvement.

China's logistics market is expected to exceed 360 trillion yuan (about $50 trillion) in total value for 2024, likely securing its position as the world's largest for the ninth consecutive year since 2016, according to the federation's projections.

Liu Yuhang, director of the China Logistics Information Center, noted that the logistics sector demonstrated stability in the first half of 2024, followed by growth in the latter half.

The fourth quarter of 2024 has seen a notable improvement in logistics demand, with growth rates continuously increasing. Liu said more positive changes in production and business activities were reported during this period.

Industrial logistics demand has expanded further, with new energy manufacturing and electronic components sectors experiencing year-on-year growth rates exceeding 20 percent. This surge is attributed to factors including the implementation of national strategic initiatives and policies promoting large-scale equipment upgrades.

Looking ahead to 2025, the logistics market is expected to maintain moderate growth as a series of national policies take effect, further boosting social logistics demand, said the federation.