The coronavirus outbreak has hit the global economy pretty hard, though the logistics industry, thanks to its necessity, has been hit less compared to most, to the benefit of Titan Transline and other providers. Meanwhile, China’s logistics sector has managed to gain back some ground in March, as operations are starting to go back to normal as the country recovers from the coronavirus outbreak, with orders for companies coming out again.
According to data from the China Federation of Logistics & Purchasing, the country’s express delivery index, which is a measure of the door-to-door activities in the country’s service and manufacturing industries, managed to hit 103.7% in March, an increase of 12.5% from February.
The federation, however, did note that February’s index was quite low, sitting at 91.2%. Logistics remained in demand during the worst of the coronavirus outbreak, as evidenced by companies like Titan Transline, and with China, a major logistics demographic, recovering, the increased demand resulted in a return for the logistics sector.
The latest number in the index, which doesn’t keep track of traditional logistics services like trucking, is the highest for 2020, as demand went up in the economy, which got hit quite hard by the coronavirus pandemic, according to the Federation. The country’s express logistics index in December 2019 sat at 105.7%.
Changes in the express logistics index in the past three months of 2020 match up with the changes in the Logistics Performance Index (LPI), which keeps tracks of all activity in the logistics sector, including express and heavyweight shipping. According to the Federation’s data, China’s LPI hit 51.5% in March 2020, which is a whopping 25.3% increase from February’s.
If the LPI sits below 50%, it signifies contraction in the industry, while a rating above 50% shows that the industry is growing.
Logistics companies in the country have already announced their plans for recovery, like JD Logistics, arm of JD.com, which announced late in March that they’re hiring at least 20,000 warehouse and delivery workers in order to meet the increase in online demand, as China slowly gets back to normal following the peak of the coronavirus outbreak.