China’s burgeoning logistics industry is expected to boost demand for fuel, food, chemicals and other commodities, according to the country’s central bank.
In a report, the People’s Bank of China (PBOC) said the country is set to become the biggest fuel importer by 2020, a move that will lead to increased supply chains and lower costs for consumers.
In 2016, the country exported about 10.8 trillion yuan ($150 billion) worth of fuel, the report said, while the annual fuel consumption in the country reached 2.2 trillion yuan in 2020.
The report said the sector’s growth will be driven by the government’s commitment to boost domestic and foreign investment, as well as the increase in the number of container ships.
It also noted the country has become a hub for the shipping of goods to the United States and other global markets.
China’s logistics sector has been in decline for years, and the report highlighted a growing trend of container ship companies that have been growing rapidly in recent years.
China is expected in 2019 to overtake Europe as the world’s biggest fuel exporter, the PBOC said.
The expansion of container shipping has been fueled by increased demand from countries such as the United Arab Emirates and the United Kingdom, as demand for fuels is soaring in those countries, and there are growing concerns about environmental and safety issues.
The PBOC’s report said container ship imports in China have been expanding at a rate of 6.3% in 2020 compared with the year before.