Domestic Federation of Logistics and Purchasing reported on January 3 that the prosperity index of China's logistics industry for December 2023 was 53.5%. Despite a slowdown in logistics business volume growth due to a decrease in upstream demand and adverse weather conditions, the index showed a stabilizing and rising trend, with steady business volume growth.
In December, the index rose by 0.2 percentage points from the previous month. Key indicators, including the total business volume index, new order index, capital turnover rate index, fixed asset investment completion index, employee index, and business activity expectation index, all remained in the expansion range.
Liu Yuhang, Director of the China Logistics Information Center, noted that core indicators of the logistics industry's prosperity are still in positive territory, particularly the accelerating growth rate of total business volume, suggesting stable and optimized logistics operations in December.
Most industries reported total logistics business volume indices in the expansion range, with new order indices for road transport, air transport, loading and unloading, warehousing and logistics, and postal express delivery exceeding 50%.
Additionally, some companies indicated that tight financing conditions have eased, with the overall capital turnover rate index above 51%. Industries such as road transport and warehousing reported turnover rates higher than 53%.
The China Warehousing Index for December 2023 was announced at 51.6%, a decrease of 0.6 percentage points from the previous month, but still in the expansion range. Indicators such as business volume, facility utilization, business profit, and average inventory turnover improved, reflecting increased warehousing activity and better business conditions.
Liu Yuhang remarked that upstream demand fluctuations influence warehousing operations and that active demand correlates with frequent warehousing operations, indicating smoother overall economic circulation.
Specifically, the business volume index rose to 52.9% in December, up 1.1 percentage points from the prior month, indicating heightened warehousing activity as market demand recovers. Notably, the growth in business volume for bulk commodities like building materials and consumer goods such as food and textiles was particularly evident.
The increase in business volume also led to higher utilization rates of warehousing facilities. In December, the facility utilization index reached 52.5%, a one-point increase from the previous month, with the average inventory turnover index at 53.3%, up 1.1 points, both remaining in expansion territory.
Cai Jin, Vice President of the China Federation of Logistics and Purchasing, stated that improved equipment utilization reflects enhanced efficiency in warehousing and logistics operations, driven by better coordination and greater automation.
For the entire year of 2023, China's average annual warehousing index was 51.5%, a significant rise of 2.1 percentage points from 2022, highlighting the expanding demand for warehousing and continued positive development of the industry amid stable economic conditions.
In November 2023, rapid growth was observed in China's commercial freight volume, with the Ministry of Transport announcing that it reached 4.88 billion tons, sustaining the recovery trend in the transportation economy.
