CHINA has the best container shipping connectivity in the
world, but it continues to fall down in logistics services, according to a
Maersk Line study.
The Maersk study said proportion of China's logistics
costs in gross domestic product is higher than many developed and developing
countries.
"China's logistics market is in its infancy and
consists of thousands of low-margin players. It is characterised by a low-cost,
simple subcontractor outsourcing mode and low market penetration of
sophisticated services," the study said.
"The lack of integration and co-ordination of
services across the supply chain results in lower operational efficiency and
higher logistics costs," it said.
"As a result, no logistics operators possess
nationwide coverage and for Chinese operators service levels are often
sub-standard.
"With rising labour costs, China needs to lower its
logistics costs and improve its logistics performance if the country is to
maintain a lead compared to its competitors' production cost advantages in
other parts of Asia," said the report.
China increased its logistics performance six per cent in
2007-2012, which resulted in a 27 per cent increase in manufactured exports, an
achievement that Maersk said can be enhanced by improvements beyond eastern and
southern China.
Source : HKSG.
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