China's first quarter logistics value nationwide increased 8.6 per cent year on year to CNY47.8 trillion (US$7.64 trillion), according to the China Federation of Logistics Purchasing (CFLP), though growth was 0.8 per cent lower, noted Xinhua.

China's logistics has managed to achieve a steady and modest growth in the first three months. China's logistics value in March increased 8.3 per cent to CNY18.5 trillion. But growth was 0.6 per cent slower.

Meanwhile, the total cost of all logistics operations in China grew 8.1 per cent to CNY2.3 trillion, which was 1.9 percentage points lower than last year. China's logistics cost accounts for 17.9 per cent in the GDP, which remained almost at the same level as in 2013.

Core business revenue of China's major logistics operators grew 25.6 per cent year on year in the first quarter, while cost went up 28.5 per cent.

Profit rate of core business revenue was only at 5.1 per cent, 1.1 percentage points lower than last year'sThis reflects that China's logistics industry is confronted with high costs and low profits.

CFLP and China Logistics Information Centre predicted that China's social logistics demand will be growing at a rate of 8.7 per cent in the first half, while its full-year social logistics growth will come in at about nine per cent.