China's freight logistics value to hit $19.8t

BEIJING - The value of China's freight logistics is expected to reach 125 trillion yuan ($19.83 trillion) in 2012, the organizers of a logistics meeting said Wednesday.

Currently, the country's logistics costs account for around 18 percent of its gross domestic product, far above the levels seen in the United States and European countries, said organizers of the Ninth Automotive Logistics China Conference, which is being held from Wednesday to Friday in Beijing.

Although strong growth is expected to continue, China is facing challenges such as high automotive logistics costs and low efficiency, said Martin Thaysen, executive vice president of the China branch of CEVA Logistics, a leading global supply chain management company.

Thaysen said logistics companies should strengthen cooperation with auto producers and use advanced supply chain management techniques to lower logistics expenses.

The conference is intended to help automotive logistics providers find ways to maximize their efficiency.