Outsourcing is the major trend in Chinese logistics market, says Transport Intelligence report
Staff -- Logistics Management, 9/6/2006
LONDON—Enormous potential for integrated contract logistics companies exists in the Chinese logistics market according to a new survey by London-based industry research and analysis firm, Transport Intelligence.
The new survey, China Logistics 2006, is made up of interviews with over 230 senior professionals representing a cross section of logistics users and providers with operations in China.
• 68 percent of respondents from logistics companies believed that outsourcing was having a “noticeable” or “major” impact on their businesses.
• 76 percent of respondents said that the majority of their outsourced logistics business was derived from multi-national manufacturers with the remainder being generated by locally based Chinese companies.
• 48 percent of respondents indicated that they outsourced none or just some of their logistics, pointing to the extent to which the trend could still develop. Chief Analyst, John Manners-Bell said in a Transport Intelligence press release, “Out-sourcing will be the defining trend behind the growth of the Chinese logistics industry over the coming few years…The greatest potential lies with domestic Chinese shippers rather than multinationals which have been amongst the earliest adopters. However competition for this business will be fierce as domestic logistics companies are now increasingly seen as a viable alternative to western and Japanese providers.” China Logistics Report 2006 includes a wide-ranging survey of shippers and logistics operators, market sizing and forecasts, as well as profiles of the leading companies. For more information, click here.
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