Part One of Our Series on Cost Reduction, Quality Improvement, and Efficiency Gains: Lowering Logistics Costs—Calling for New Business Forms and Models in the Industry

General Secretary Xi Jinping emphasized: “Logistics is the lifeblood of the real economy, linking production and consumption as well as domestic and international trade. It is imperative to effectively reduce society-wide logistics costs, strengthen the core competitiveness of industries, and enhance the efficiency of economic operations.”

According to statistics, 2023 In this year, the total social logistics costs in China accounted for GDP The ratio is 14.4% , and with the “ 14th Five-Year Plan ” The “Modern Logistics Development Plan” proposes to reduce [something] within five years. 2 There is still a certain gap compared to the target of percentage points.
Since the beginning of this year, the central government has repeatedly issued directives to drive cost reduction, efficiency gains, and quality improvements across the entire logistics sector. Why cut costs? How can efficiency be boosted? And how can quality be enhanced? Starting today, this newspaper will progressively compile and analyze exemplary practices from relevant industries throughout the year, aiming to offer insights and lessons that can help steer the industry’s development.

As China’s largest land-based gateway for automobile exports, the Horgos Port has witnessed countless vehicles embarking on their journey to Central Asia and Europe. “ The ferryman of complete vehicle exports ” Simply drive the vehicle from the Khorgos Port to the designated area in Kazakhstan and hand it over to the customer, after which the freight forwarder will transport it to the specified delivery location. However, with the launch of China–Europe Railway Express services, the profession of shuttle‑car drivers is now facing new challenges.

(Image source: CCTV)

Multimodal transport, by seamlessly integrating different modes of transportation into a continuous, comprehensive, and unified freight‑carrying system, can significantly enhance transport efficiency and reduce logistics costs.
“ Taking the transport of goods from Horgos to Moscow as an example, the freight cost for a single truck is approximately… 1600 U.S. dollars. However, as the number of China–Europe Railway Express services has increased, road transport—primarily using flatcars and railway containers—has gradually matured. According to statistics, vehicles carried by these trains have reached Central Asia, Russia, Germany, and other European countries, with transit times cut by half compared to sea freight. ” A freight forwarding company stated in an interview with a reporter from Modern Logistics News.
Reduce logistics costs It is imperative.

Logistics seamlessly integrates the primary, secondary, and tertiary sectors, bridging production and consumption. It permeates the entire value chain of enterprise operations, and factors such as logistics models, efficiency, and levels of digitalization exert a profound impact on an organization’s end-to-end costs.
Social logistics costs refer to the portion allocated to… GDP Logistics costs on the platform, with logistics expenses typically accounting for… GDP The ratio serves as an indicator for measuring a country’s logistics efficiency and level. Simply put, it reflects how much a country must spend on logistics to earn one yuan.
Research by CICC indicates that, in terms of both the absolute value of logistics costs and their share… GDP In terms of relative weight, China’s figure is higher than that of the United States, but its tonne‑kilometre cost remains low. 2019 In the year, China’s ton-kilometer cost was 0.73 Yuan / tonne-kilometers, compared to the United States’ 1.12 Yuan / Low ton-kilometers 35% . From the perspective of the transportation stage alone, China’s ton-kilometer transportation cost is 0.39 Yuan, lower than in the United States. 47%。
However, data show that in developed countries such as the United States and Japan, total social logistics costs and… GDP The ratio is approximately around 8% , this figure in China is far higher than in developed countries. In China, the per-unit… GDP The scale of turnover is substantial. Influenced by the industrial structure, China’s primary and secondary sectors account for a large share, with output predominantly in physical goods, resulting in high logistics demand. However, the relatively low value-added of these products means that China’s total social logistics costs and… GDP The ratio is far higher than that of the United States.
In theory, logistics costs /GDP It is by the unit. GDP It is determined by freight volume, average transport distance, and ton-kilometer logistics costs. According to a research report by Zhongtai Securities, the unit… GDP Both freight volume and average transport distance are determined by the industrial structure; among these three variables, only the logistics rate—namely, the cost per ton-kilometer—is the key factor that dictates the level of logistics costs.
In recent years, China’s logistics costs and… GDP The ratio has declined year by year, thanks to improvements in the quality of domestic economic development, optimization of the economic structure, reduced operating costs for logistics enterprises, a strengthened market mechanism, and a significant increase in product value added.
He Liming, President of the China Federation of Logistics and Purchasing, at… 11 month 17 At the China Logistics Academic Annual Conference held in Langfang, it was pointed out that reducing logistics costs does not simply mean lowering freight rates; rather, it requires extending services and innovating business models to enhance quality and efficiency. By developing new‑generation productive forces in logistics—driven by technological innovation that spurs advances in management, business models, and institutional frameworks—we can shift the industry’s growth paradigm from price‑based competition to value‑based competition, unlocking fresh pathways for cost reduction and efficiency gains and injecting strong momentum into the high‑quality development of modern logistics.
In recent years, thanks to the application of artificial intelligence and IoT technologies and the development of smart logistics systems, China has seen a substantial boost in logistics efficiency, a marked reduction in logistics costs, and more precise, higher‑performing logistics services, leading to a steady decline in the country’s overall social logistics costs. However, numerous industry experts point out that key bottlenecks—such as an underdeveloped infrastructure network, relatively low levels of technological equipment, insufficient progress in multimodal transport, and an incomplete modern supply chain system—continue to hinder further reductions in logistics expenses.
To effectively reduce society-wide logistics costs, it is necessary to adopt a comprehensive set of measures to adjust the industrial structure and advance reforms, thereby lowering costs across transportation, warehousing, management, and other areas.
Improve the top-level design Overall planning

11 month 27 On [date], the General Office of the CPC Central Committee and the General Office of the State Council issued the “Action Plan for Effectively Reducing Logistics Costs Across Society.” The Plan sets out the key objectives for logistics development: by… 2027 In [year], the ratio of total social logistics costs to gross domestic product will strive to be reduced to… 13.5% Around. The reform of the integrated transport system has achieved new breakthroughs, and the structure of freight transport has been further optimized. Efforts will be made to increase the share of railway freight volume and railway freight turnover to, respectively, 11%、23% Around this time, the volume of intermodal container transport by rail and water at ports has maintained rapid growth.
A group of internationally competitive modern logistics enterprises will be cultivated, the national logistics hub system and the modern logistics service network will be further improved, and a unified, efficient, and orderly competitive logistics market will essentially take shape. Meanwhile, the strategic role of modern logistics in enhancing the resilience and security of industrial and supply chains will be significantly strengthened.

(Image source: Xinhua Net)

11 month 9 On [date], the Ministry of Transport and the National Development and Reform Commission issued the “Action Plan for Reducing Costs, Enhancing Quality, and Improving Efficiency in Transport and Logistics,” specifying that by [date]… 2027 In [year], significant progress was made in reducing costs, improving quality, and enhancing efficiency in the transportation and logistics sectors, with the goal of lowering the ratio of total social logistics expenses to gross domestic product to… 13.5% Left and right. The action plan proposes accelerating the development of a national integrated, multi-dimensional transportation network, deepening the adjustment and optimization of the transport structure, and promoting the integrated development of transportation, logistics, and industry, among other measures. 18 These specific measures are designed to accelerate structural, systemic, institutional, technological, comprehensive, and operational cost reductions, quality improvements, and efficiency gains in the transport and logistics sectors, thereby better supporting high-quality economic and social development.
This year 2 The Fourth Meeting of the Central Financial and Economic Commission, held in late [month], conducted an in-depth study on reducing logistics costs across the entire society. The meeting noted that the logistics sector currently faces… “ Low cost at a single stage, but high operating costs across the entire value chain. ” the contradictions, as well as the issues of inefficient allocation of logistics resources and low efficiency in circulation and distribution. This year’s Government Work Report stated that, “ Implement measures to reduce logistics costs. ” . This year 5 At its monthly executive meeting, the State Council specifically deliberated on measures to effectively reduce logistics costs across the entire economy. The issue of logistics costs has been repeatedly highlighted at key meetings, with a series of documents and policy measures firmly anchored to this goal. “ Reduce logistics costs ” , reflecting the central government’s determination to reduce logistics costs across the entire economy.
In recent years, the central government has consistently advanced efforts to reduce logistics costs and enhance efficiency, formulating a modern logistics development plan, issuing a series of strategic documents aimed at cost reduction and productivity improvement, and introducing a range of policy measures and guiding principles. Guided by top-level design, these initiatives have steadily propelled the logistics sector toward higher quality, lower costs, and greater efficiency. “ The 12th Five-Year Plan ” Since then, national policies have placed great emphasis on the development of the logistics sector, continuously advancing the construction of major logistics hubs, and further refining logistics industry development plans, to… “ 14th Five-Year Plan ” During this period, the focus on reducing logistics costs and improving efficiency has become more pronounced, with efforts centered on two key areas: lowering costs across the entire supply chain and implementing structural cost‑reduction measures.
2015 year 11 month 10 Following the first proposal of supply-side structural reform at the 11th meeting of the Central Leading Group for Financial and Economic Affairs on [date], the State Council and relevant departments have deepened supply-side structural reform in the logistics sector, focusing on enhancing overall operational efficiency and reducing society-wide logistics costs. Subsequently, they issued the “Three-Year Action Plan for Promoting the Development of the Logistics Industry (…”. 2014-2016 Year)》“Special Action Plan for Reducing Costs and Improving Efficiency in the Logistics Industry ( 2016-2018 “Opinions on Further Reducing Logistics Costs and Enhancing Efficiency to Promote the Development of the Real Economy,” along with other key documents, have been issued to continuously advance the transformation, upgrading, and high-quality development of the logistics sector.
Judging from the logistics-related plans and guiding opinions that have been issued, measures to reduce costs and boost efficiency—such as improving factor supply and promoting industrial integration—have been consistently emphasized throughout. These include the “Notice on Issuing the Medium- and Long-Term Development Plan for Logistics” and the “Guiding Opinions on Actively Promoting Innovation and Application in Supply Chains,” among others. “ 14th Five-Year Plan ” Both the “Cold-Chain Logistics Development Plan” and other documents emphasize the need to accelerate efforts to reduce logistics input costs, increase investment in innovation, and enhance the efficiency of factor allocation in order to lower expenses. The “Opinions on Promoting High-Quality Logistics to Foster a Strong Domestic Market”… “ 14th Five-Year Plan ” The “Express Delivery Industry Development Plan” explicitly emphasizes the need to foster synergy among agriculture, manufacturing, and the logistics sector in order to reduce overall logistics costs.

Boosting business vitality Bloom upon landing

8 month 7 On [date], the Ministry of Transport issued a notice announcing the list of exemplary cases for reducing costs, improving quality, and enhancing efficiency in transport and logistics (the first batch), which includes Liaoning’s initiative to extend railway dedicated lines into enterprises and industrial parks, thereby facilitating large-scale industrial and mining enterprises. “ Public-to-Rail Transition ”“ Revolutionary Water ” Wait 18 A typical case. The steady decline in China’s social logistics costs would not have been possible without the concerted efforts of local governments and enterprises.
AnYang City, Henan Province, takes the initiative to establish a green freight and delivery demonstration project as a key driver for development, and is building… “4+9+N” the three-tier urban delivery node network, and improve “200+1800” the parking and charging support infrastructure system, and strengthening “16+1500” The operational framework and infrastructure have established a city‑level green freight distribution system that is fully networked, well‑organized, diversified in its models, seamlessly connected in information flow, low‑carbon and environmentally friendly, and distinctly characterized. By locating sorting centers within logistics parks, the system enables nearby transshipment and redistribution of goods, significantly reducing land use and shortening sorting‑and‑distribution lead times. The electrification rate of delivery vehicles for supermarket vegetables, express parcels, and general groceries has reached… 90% That concludes the discussion. The ratio of enterprise logistics costs to total commodity circulation costs has declined. 2 By more than a percentage point, the average delivery cost for logistics companies has decreased. 15% That is all.

(Image source: Xinhua Net)

The pilot project for automated highway freight transport from Tianjin Port to Majuqiao Logistics Park is the first cross-provincial and municipal commercial trial of cooperative automated driving for trunk‑line logistics vehicles in China. The project is geared toward trunk‑line logistics transportation, and… “ Tianjin Port — Beijing–Tianjin–Tanggu Expressway — Ma Juqiao Logistics Park, Beijing Economic-Technological Development Area ” Achieving cross-regional autonomous truck platooning on the route, successfully pioneering a new approach. “ Smart Freight Corridor + Autonomous driving capacity ” The business model establishes a new logistics paradigm integrated with autonomous driving, enhancing the safety, efficiency, and cost-effectiveness of long-haul road transportation. By reducing driver and fuel expenses, this model can lower overall transportation costs. Upon large-scale deployment, it is expected to cut operating expenses by approximately… 15% , reducing labor costs for trunk-line transportation by approximately 50%。
Ezhou Huahu International Airport is the world’s fourth and Asia’s first dedicated air cargo hub. In recent years, Huahu Airport has expanded its cargo route network, pioneered an axis‑radiating air cargo transportation system, developed a transshipment hub, and enhanced intermodal transport efficiency. It currently boasts Asia’s largest express parcel‑handling system, with its airside loading and unloading facilities employing… “ Integrated modular loading and unloading ” The design has improved the efficiency of seamless transfer operations, such as full‑board handling in aviation pallet boxes and truck‑to‑truck connections, by approximately… 30% , construction “ Smart Brain ” , breaking down data silos and improving the efficiency of export customs clearance for express shipments by approximately 26% , strengthen digital energy management to promote energy conservation and carbon reduction; the annual electricity cost savings across energy stations, electric vehicles, and high-mast lighting equipment total 100 Ten thousand yuan, reducing carbon emissions 1 Ten thousand tons / Year.