[photopress:airr_DHL_767_1.jpg,full,alignright]A contradiction in terms but China’s fast developing express service industry may slow down in 2008. The fault will lie wih the US economy which is suffering from the sub-prime, dodgy loans which have been such a feature of its financial field.
Logistics Association China puts forward a scenario where foreign majors represented by DHL and Federal Express will tap the chance of Beijing 2008 Olympic Games to reinforce their leading positions in the Chinese market, while domestic players, especially private ones, which feature smaller business volume, weaker capital strength and poorer management, will start to have a rough time.
China’s express service industry has been growing at a pace of around 30% in recent years and become one of the fastest growing markets of the world.
True, but DHL China, which should know, states signs of a slowdown actually appeared in 2007 this despite the fact the Chinese market still maintained steady growth.
Another major foreign player, Federal Express China, is more optimistic, working on the the basis the Chinese economy to a degree can be independent from world market changes, It is certain that domestic express service market will continue stable growth momentum although the view of domestic analysts is that with the market base getting increasingly bigger, the growth of domestic express service industry will get slower as compared to years ago.
Source: CargoNews Asia
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