Global uncertainties and a resurgence of COVID-19 in China has caused the country’s logistics performance index to go down by 2.5 percentage points month-on-month to 48.7 per cent in March, according to the China Federation of Logistics and Purchasing (CFLP). The logistics performance index tracks business volume, new orders, employment, inventory turnovers and equipment utility rates in the sector.

A reading below 50 per cent indicates contraction while that above 50 per cent reflects expansion.

The sub-index for business cost increased to 60.4 per cent in March suggesting high cost of production for logistics companies. The sub-index for new orders was 49.4 per cent, down 0.8 percentage points compared to the previous month, Chinese media reports said quoting the CFLP.

Additionally, the e-commerce logistics sector also contracted by 4.9 points month-on-month to reach 104 points in March, according to a joint industry survey conducted by JD.com and CFLP. This is the lowest score in two years.

The sub-index for business costs for the e-commerce logistics sector increased by 5.5 points in March, while the sub-index for business volume decreased by 9.7 points month-on-month to reach 118.2 points, according to the survey.

Fibre2Fashion News Desk (KD)

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