China’s total logistics expenses grew 18.7 per cent year-on-year to Rmb5,700bn in the first nine months of 2011, mostly because of rising costs of raw materials, fuel, power and labour, and a higher interest rate, according to statistics released by China Federation of Logistics and Purchasing.

Logistics costs accounted for 18 per cent of the country’s GDP during the period, up by 0.1 per cent on the same period of last year, and nearly twice the average rate in developed nations, which stands at about 10 per cent.

In the first eight months, major logistics enterprises saw their core business revenues rise 29.6 per cent year-on-year, with operating costs rising 31.4 per cent and operating profits up 13.2 per cent.