According to the China Federation of Logistics and Purchasing (CFLP), cold chain logistics in China experienced steady growth in the first half of 2023, with market size continuing to expand.
Cold Chain Logistics Sees Steady Growth
In the first half of 2023, China’s total cold chain logistics value reached 3.22 trillion yuan, a 3.9% year-on-year increase. The total cold chain logistics volume was 220 million tons, up 4.4%, and total revenue stood at 277.9 billion yuan, an increase of 3.4%.
Cui Zhongfu, Vice President of CFLP, noted:
“Overall, the market has maintained stable growth, driven primarily by rising consumer demand. As consumer expectations for product quality grow, so does the demand for cold chain logistics.”
Additionally, as of June 30, 2023, China’s total cold storage capacity reached 237 million cubic meters, a 7.73% year-on-year increase, with 9.42 million cubic meters of new capacity added this year. National cold storage rental exceeded 29 million cubic meters, growing over 8% year-on-year.
Accelerated Cold Storage Construction from Farms to Hubs
Cold storage facilities are critical nodes in the cold chain, enabling the sorting, packaging, and distribution of goods. The Chinese government is ramping up efforts to build cold storage facilities at production sites to better connect fresh agricultural products to markets.
At an okra farm in Haimen District, Nantong City, Jiangsu Province, 500 acres of okra are being harvested. For the first time, a field-side cold storage unit ensures the produce stays fresh.
Guo Zhenchun, a farm owner, said:
“Okra is highly perishable. After harvest, it’s immediately pre-cooled for four hours in the cold storage and then processed at a consistent 3°C before being loaded onto cold chain trucks.”
Haimen District, a major fruit and vegetable production area, faced challenges with product accumulation and spoilage due to short harvest cycles. In recent years, the district has implemented county-wide cold chain pilot projects, establishing 20 cold storage facilities with a total capacity of 78,700 cubic meters.
Similarly, at the Nanchang National Backbone Cold Chain Logistics Base, a 700,000-cubic-meter standardized cold storage facility began operations this year. Using variable temperature technology, it provides storage zones for different temperature needs. The facility handles over 2,000 types of cold chain products weekly.
In the first half of 2023, cold storage project investments totaled 20.718 billion yuan, a 11.39% year-on-year increase, according to CFLP’s Cold Chain Logistics Committee.
Cui Zhongfu added:
“Building first-mile cold chain facilities helps preserve the quality of agricultural products and reduces post-harvest losses. These facilities are crucial for increasing farmers’ incomes.”
Explosive Growth in New Energy Refrigerated Trucks
While overall refrigerated truck sales slightly declined in the first half of 2023, new energy refrigerated trucks saw explosive growth, thanks to policy support and the expansion of charging infrastructure.
At a new energy refrigerated truck factory in Henan, production lines are running at full capacity. It takes less than nine minutes to assemble a new truck.
Yang Xiaoyu, Manufacturing Director at Yutong Light Commercial Vehicles, said:
“This year, demand has surged, and our production has grown by 316% compared to last year. Orders are now scheduled through November.”
In the first seven months of 2023, new energy refrigerated truck penetration stabilized above 30%, driven by government policies promoting equipment upgrades. A recent directive from the Ministry of Transport and Ministry of Finance provides subsidies for retiring old commercial vehicles.
Wei Yong, General Manager of Henan Shenmu Supply Chain Management Co., noted:
“Each refrigerated truck subsidy amounts to 35,000 yuan, reducing our purchase costs. We plan to buy 150 additional trucks in the second half of the year.”
In the first half of 2023, 4,803 new energy refrigerated trucks were sold, a staggering 292.72% year-on-year increase. With continued support for vehicle upgrades and expanded charging infrastructure, the new energy refrigerated truck market is expected to grow rapidly.
“Rail + Cold Chain” Model Expands New Markets
In addition to road freight, the rail + cold chain model is gaining momentum, opening new markets for imported fresh products like meat and fruit.
Recently, a cold chain rail shipment of imported meat arrived at Chengdu International Railway Port, consisting of 39 containers of frozen chicken and beef. The port now runs a cold chain rail service once a week, connecting China with Europe, Laos, and Vietnam.
Since resuming cold chain operations in May 2022, the port has handled over 20,000 tons of imported fresh products, enriching dining options across Southwest China.
Meanwhile, Southeast Asian fruits such as Thai durians are arriving in China via rail-sea intermodal cold chain services. In July 2023, Nanchang International Land Port launched its first such service, reducing transport times by nearly 30% compared to traditional road freight.
Yin Xiaolong, Chairman of Nanchang Xiangtang Railway Port Development Co., said:
“Leveraging Nanchang’s multimodal transport network, we’ve established a new logistics corridor combining rail, road, and sea cold chain services, significantly improving logistics efficiency.”
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Post time: Nov-13-2024