China’s Internet-based freight transport industry sees rising market concentration: report

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China’s internet-based freight transport market was in transition from a rapid expansion phase to a high-quality development phase from 2020 to 2023, with the market concentration gradually increasing, according to a new report released by the China Federation of Logistics and Purchasing (CFLP) on Friday.

Internet-based freight transport, a manifestation of the digital economy within the logistics sector, distinguishes itself from traditional logistics through its fully online process.

According to the report, the transportation costs in China’s highway freight market reached approximately 5.88 trillion yuan (809.8 billion U.S. dollars) in 2023, reflecting continued market expansion.

From 2020 to 2023, the number of registered internet freight transport enterprises steadily increased, and by the end of 2023, there were 3,069 such enterprises nationwide, with a total of 130 million orders completed throughout the year — a 40.9 percent increase year on year, said the report.

Furthermore, the year-on-year growth rate of the number of registered internet freight transport companies declined from 141 percent in 2021 to 29 percent in 2022, and further down to 21 percent in 2023, indicating that the industry’s blind expansion period has ended, and it is transitioning from a rapid growth phase to a high-quality development phase, said the report.

The CFLP’s Logistics Information Service Platform Division’s survey indicated that in 2023, the total freight costs in the internet-based freight transport market were approximately 700 billion yuan (96.4 billion U.S. dollars), accounting for about 12 percent of the total highway transportation costs in the country.

“Compared to 2022, the market penetration rate has increased by 2 percentage points. The top ten companies account for 30 percent of the total freight costs in the internet-based freight transport market, with a combined freight charge of 240 billion yuan (33 billion U.S. dollars). This growing market concentration benefits logistics companies by enabling them to expand and strengthen operations, thereby promoting high-quality development of the transport industry,” said Cui Zhongfu, deputy chief of CFLP, at a press conference in which the report was released.

China's Internet-based freight transport industry sees rising market concentration: report

China’s Internet-based freight transport industry sees rising market concentration: report

China's Internet-based freight transport industry sees rising market concentration: report

China’s Internet-based freight transport industry sees rising market concentration: report

The Standing Committee of the 14th National People’s Congress (NPC), China’s top legislature, will start its 10th session Monday to review multiple draft laws and law revisions, according to a press conference on Friday.

The agenda includes revisions to the Financial Stability Law, aiming to enhance China’s financial management, clarify the responsibilities of central financial institutions, and strengthen financial risk prevention mechanisms.

Lawmakers will also review amendments to the Public Security Administration Punishment Law, addressing issues such as the treatment of minors who violate public security regulations and the penalties for illegally selling or raising dangerous animals.

A key focus will be the review of the draft Frontier Health and Quarantine Law, which aims to streamline the cross-border disease prevention process.

“The revised draft will further optimize the system and measures to prevent cross-border spread of infectious diseases in normality. It will improve quarantine inspection measures by distinguishing difference situations. It clarifies that customs can subject inbound and outbound travelers to normal quarantine inspection measures, including temperature checks and medical inspections. It also allows for medical examinations given specific circumstances,” said Huang Haihua, director of the Research Office of the Legislative Affairs Commission of the NPC Standing Committee.

The draft law also emphasizes the optimization of quarantine procedures and prioritizes medical treatment for individuals potentially suffering from monitored infectious diseases, according to Huang. “The General Administration of Customs should continue to optimize quarantine procedures based on domestic and international infectious disease monitoring and risk assessments. For individuals potentially suffering from monitored infectious diseases, customs should issue convenient treatment cards for priority medical diagnosis and treatment, and medical institutions shall give priority to diagnosis and treatment to persons holding convenient medical treatment cards,” said Huang.

China's top legislature to review key draft laws, amendments

China’s top legislature to review key draft laws, amendments


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