Weight of high cost logistics
By Yang Jian |
June 7, 2012, Thursday
|
Print Edition
Print Edition
CHINA'S logistics industry is burdened by high costs and low credibility which will harm efforts to expand, according to an industry survey yesterday.
The costs of logistics in the country account for 18 percent of China's gross domestic product, or double those of the US and Europe, the survey, released by the Global Supply Chain Council, said.
"The low efficiency in using trucks and poor connections are responsible for the high costs and curbing the industry's growth," said Martin Thaysen, executive vice president of CEVA Logistics which did the survey together with the council.
The survey interviewed 177 high-ranking officials and executives from various industries, including automobile, industrial equipment, apparel and fast moving consumer goods, who need reliable logistic services in China.
Some 49 percent of them said high cost and reliability are the biggest problem in the domestic logistics industry.
More than 30 percent of them said they were dissatisfied with the country's logistic services and over 60 percent of the dissatisfaction was related to bad services and low credibility.
Poor infrastructure and high prices were the second and third major dissatisfactions. Some 28 percent of the firms complained domestic logistic providers failed to adapt to their particular circumstances.
The costs of logistics in the country account for 18 percent of China's gross domestic product, or double those of the US and Europe, the survey, released by the Global Supply Chain Council, said.
"The low efficiency in using trucks and poor connections are responsible for the high costs and curbing the industry's growth," said Martin Thaysen, executive vice president of CEVA Logistics which did the survey together with the council.
The survey interviewed 177 high-ranking officials and executives from various industries, including automobile, industrial equipment, apparel and fast moving consumer goods, who need reliable logistic services in China.
Some 49 percent of them said high cost and reliability are the biggest problem in the domestic logistics industry.
More than 30 percent of them said they were dissatisfied with the country's logistic services and over 60 percent of the dissatisfaction was related to bad services and low credibility.
Poor infrastructure and high prices were the second and third major dissatisfactions. Some 28 percent of the firms complained domestic logistic providers failed to adapt to their particular circumstances.
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