China’s Logistics Sector Posts Solid Start in Q1 2026 with Steady Growth

Recent data released by the China Federation of Logistics and Purchasing (CFLP) shows that China’s logistics sector made a sound start in the first quarter of 2026, with robust demand growth and consolidated cost-reduction achievements, reflecting the strong resilience of the country’s economic development.

CFLP reported that the total social logistics volume in China reached 96.4 trillion yuan in the first quarter, a year-on-year increase of 6.2%, 0.5 percentage points higher than the same period last year. The steady growth momentum indicates that the logistics sector is operating well and moving in a positive direction, providing strong support for the country’s high-quality economic development.

Industrial product logistics, a core pillar of the sector, maintained stable support with high-end manufacturing leading the growth. In the first quarter, the total logistics volume of industrial products rose by 5.8% year-on-year, contributing more than 80% to the growth of total social logistics volume and serving as the main driving force for logistics demand. Among them, logistics demand from the manufacturing industry accounted for over 80%, highlighting its pivotal role in boosting the logistics sector.

China Economic Net notes that high-end manufacturing sectors such as new energy vehicles, industrial robots and smart equipment have seen rapid development in the first quarter, driving the growth of logistics demand for high-value-added products and further optimizing the structure of industrial product logistics.

Logistics related to people’s livelihood consumption also maintained a steady upward trend, with new consumption drivers continuing to strengthen. The total logistics volume of goods for units and residents increased by 6.5% year-on-year in the first quarter. Notably, rural consumption outperformed urban consumption, with the proportion of county and rural markets rising steadily, driven by the continuous improvement of rural logistics infrastructure and the booming development of e-commerce in rural areas.

While logistics demand maintained rapid growth, the overall logistics cost showed a stable and downward trend, and the achievements of cost reduction and efficiency improvement were consolidated. CFLP data reveals that the total social logistics cost in the first quarter was 4.7 trillion yuan, accounting for 14% of GDP, a decrease of 0.1 percentage points compared with the same period last year.

He Hui, chief economist of CFLP, said in an interview that the continuous decline in the ratio of total social logistics cost to GDP indicates that China’s logistics sector has made steady progress in transforming its development mode and improving quality and efficiency. “We will continue to promote the integration and upgrading of logistics resources, optimize the logistics network layout, and further enhance the efficiency and competitiveness of the logistics sector,” he added.

The sound operation of the logistics sector in the first quarter has laid a solid foundation for the stable operation of the national economy. With the continuous advancement of policies to support the logistics industry and the accelerated digital and intelligent transformation, China’s logistics sector is expected to maintain a steady growth trend, continuously release development vitality and better serve the high-quality economic development.