China Project Logistics Market Size

China Project Logistics Market Analysis

The market for project logistics in China is anticipated to grow at a CAGR of more than 2% during the forecast period.

• It is expected that the short-term rise in oil prices will help the project cargo industry around the world.On the other hand, a long-term reduction in oil prices is anticipated, which will result in less money being invested in new projects.
• China produces a large amount of heavy freight that is sent abroad. China is the world's greatest producer of steel, and its capacity is ten times greater than that of the US. As a result, a country is a popular destination for other countries to import large steel structures.
• Additionally, thanks to the Belt and Road Initiative (BRI), infrastructure spending in China and its neighbors is rising quickly. The project enhances trade promotion and transportation infrastructure.
• Recent research shows that China's approach to international lending has changed. China's investments in infrastructure projects under its Belt and Road Initiative (BRI) have gone down, while Beijing's short- and medium-term help to partner countries, some of which are dealing with rising debt levels, has gone up.
• A report from the Green Finance and Development Centre (GFDC) at Shanghai's Fudan University says that China's investments and contracts in 147 countries added up to USD 28.4 billion in the first half of 2022. This is a 47% increase from the same time last year.Through investments, USD 11.8 billion was made, and through project contracts, USD 16.5 billion was made.
• The risks of moving project cargo are growing, not just in terms of the limit on how much can be moved, but also in terms of the Delay in Start-up (DSU) values at the end, where insurance amounts could reach USD 1 billion.
• When elements like re-fabrication, shipping, charges, lost revenues, and other operational costs are taken into account, a shipment's failure to arrive intact can result in a massive, multi-million dollar Delay in Start-up (DSU) loss. The BRI projects, which require shipping commodities over extremely lengthy inland transits to regions like Southeast Asia, are increasing this risk.
• In China, the ports of Qingdao, Dalian, Guangzhou, and especially Shanghai and Tianjin are typically used to handle project cargo.
• China's zero-COVID-19 policy had a big effect on global supply chains because it shut down many major cities for a long time, which would have been unthinkable before the pandemic.Restrictions associated with COVID-19 significantly reduced China's capacity for production, logistics, and people mobility, as well as its corporate and consumer trust.
• China is a major source of many consumer goods, parts for making things, and raw materials. The loss of its industrial and logistics capabilities has made global inflation worse by causing a persistent shortage of supplies in global markets that are all connected.