China's logistics sector sees rising optimism, investment as efficiency improves

China's logistics sector posted a positive turning point in September, with increased fixed asset investment, rising employment and stronger market confidence, industry data showed Sunday.

In September, the fixed asset investment completion index for the logistics sector rose by 0.4 percentage points month on month, remaining in the high prosperity range for several consecutive months. As logistics business volume continued to rise, the sector's capacity to generate jobs has kept improving, with the employment index up by 0.2 percentage points and job opportunities continuing to grow.

On the operational side, the equipment utilization index stood at 50.1 percent, up by 0.5 percentage points from last month, entering the expansion range for the first time this year. With vehicles, warehousing and other logistics facilities used more effectively, capital and inventory turnover have improved, helping to smooth industrial supply chains.

From the perspective of market expectations, the business activity expectation index for September was 56.2 percent, up by 1.8 percentage points month on month. Enterprises remained optimistic about the fourth-quarter market, with investment willingness and business confidence both strengthening.

Meanwhile, cost pressures still objectively existed. For the first nine months this year, the main business cost index stayed above 52 percent, with September's index up 0.4 percentage points. Rising labor, management, and energy expenses continued to challenge the sector, but corporate profitability resilience stabilized in September, with the main business profit index flat month on month, and the average profit level in the third quarter remaining stable.

"Relying on the construction of the 'Six Networks', we are stepping up efforts to address weaknesses in logistics infrastructure and ensure the implementation of project reserves. Meanwhile, logistics enterprises are accelerating inventory turnover, optimizing business models, and promoting digital and intelligent upgrades. These efforts help boost supply chain efficiency, offset rising costs, and reinforce steady industry progress," said He Hui, vice president of the China Federation of Logistics and Purchasing.

The "Six Networks" refer to water networks, new-type power grids, computing power networks, next-generation communication networks, urban underground pipeline networks and logistics networks.

China opened 15 new international air cargo routes in September, adding 42 round-trip flights per week, the China Federation of Logistics and Purchasing (CFLP)’s air logistics division said on Sunday.

The newly launched routes included nine to Asia, four to Europe, and two to North America.

The cargo transported on the routes mainly included cross-border e-commerce goods, fresh food and agricultural products, electromechanical and electronic products, high-end manufactured goods, and consumer goods for daily use.

The flights are operated by nine airlines, eight of which are Chinese carriers.

According to CFLP’s air logistics division, China had opened a total of 130 new international air cargo routes as of September 30 this year, adding more than 334 round-trip flights per week.