China external logistics reached a total value of RMB 48 trillion in 2005 with a year-on-year growth of 25.2%, which was a little lower than the previous year but it sill an astound increase. Industrial product logistics developed fastest; agricultural product logistics increased slowest.

The total value of China external logistics amounted to RMB 26.8 trillion in the first half of 2006, rising 15.3% compared to the 1st half of 2005, but its growth rate declined by 1%, which was mainly caused by decreasing growth rate of industrial product logistics.
The total value of industrial product logistics was RMB 23.4 trillion, up 15.6% compared to the 1st half of 2005, but its growth rate declined by 1.2%.
The total value of import logistics was RMB 2.95 trillion, up 14.2% compared to the 1st half of 2005, and its growth rate increased by 0.2%.
The total value of agricultural product logistics reached RMB 461.5 billion, growing 5.1% compared to the 1st half of 2005.

From the view of total logistics expense structure, in the first half of 2006, transport cost was RMB932.9 billion, rising 12.9% compared to the 1st half of 2005.

Storage cost was RMB 531.4 billion, rising 18.6% compared to the first half of 2005.
Management cost RMB 214.4 billion, rising 13.2% compared to the first half of 2005
Third-party logistics in 2005 exceeded RMB 100 billion, rising about 30% compared to the previous year.

More and more global logistics corporations began to establish bases or distribution centers in Asia Pacific, such as UPS, FedEx, DHL, TNT, Exel, APL, BAX, Maersk, and Schenker.

Due to the rising price of petroleum and the increasing investment in facility and technology, the operation cost of logistics enterprises will increase dramatically.
On the other hand, intensive competition will lead to a price war. The services of the logistics enterprises become more and more professional in order to improve their profitability and competitiveness.

There are about 16,000 logistics companies with an industrial output value of more than RMB 39 billion in China.
It is forecast that the output value will reach RMB 1.2 trillion by 2010.

The huge market has attracted many freight transportation giants to join in. China logistics industry will maintain the rapid growth in the following several years. The promising logistics market in China will provide the investors with great opportunities.