China's logistics business volume continued to rise in December of 2024, with the prosperity index reaching a new high for 2024, indicating a significant increase in logistics activity, according to the China Federation of Logistics and Purchasing on Friday.
In December 2024, the prosperity index of China's logistics industry stood at 53.1 percent, up by 0.3 percentage points from the previous month.
Supported by favorable policies and inherent market dynamics, the total logistics business volume index has risen for five consecutive months.
Business volume indexes have shown balanced growth across the nation, with the eastern region experiencing the most significant climb.
From an industry perspective, there was a notable upturn in logistics demand during the month in sectors such as electrical machinery, semiconductors, communication equipment, transportation equipment, and new energy vehicle manufacturing.
In addition, the potential for residential consumption continues to be released, with stable demand for online shopping.
The total business volume indexes for road transport, water transport, and multimodal transport all showed varying degrees of increase month on month.
Meanwhile, the total business volume indexes for railway transport, air transport, and postal express industries remained above 55 percent, indicating a high level of prosperity.
"Throughout the year of 2024, the prosperity index of China's logistics industry demonstrated a pattern of stability followed by growth, maintaining a steady upward trend in overall logistics operations. The continuous enhancement of logistics service capabilities, characterized by high quality, high efficiency, and high adaptability, plays a crucial foundational role in promoting both domestic and international economic circulation, accelerating the flow of goods, and ensuring the stable operation of the national economy," said Liu Yuhang, director of the China Logistics Information Center.
China's logistics sector in Dec reaches new high for 2024
A 25 percent import tariff on all foreign-built vehicles entering the United States has raised serious concerns for manufacturers in South Africa.
Automotive giants like Mercedes and BMW have long used South Africa as a base for global exports -- but those plans may be shifting into reverse gear after the U.S. announced the punitive measures.
"If you take, for example, BMW, 97 percent of the X3 that we are producing in Rosslyn is exported out of the country. We only sell 3 percent in South Africa, and there's a huge number of those vehicles that also go into the U.S. So there are companies in South Africa that are purely here not because they are selling vehicles in South Africa; they are here to produce vehicles for the global market, and it's important for them to remain globally competitive," said Mike Mabasa, CEO of the National Association of Automobile Manufacturers of South Africa.
U.S. automaker Ford, which has deep roots in South Africa, is also in the crosshairs.
The company recently invested over 300 million U.S. dollars to upgrade its Silverton plant in Pretoria, South Africa, for the production of the world's only plug-in hybrid Ranger, which has just entered production but could face delays or restrictions.
"If an American citizen wants to buy specifically a Ford Ranger that is a plug-in hybrid, they can only place an order in South Africa, nowhere else in the world. So, that means, obviously, the capacity of Ford to be able to produce those vehicles in big volumes is going to be constrained, because Americans are going be looking at another Ford that is produced in another country, or even in the United States," said Mabasa.
South Africa has long enjoyed duty-free automotive exports to the U.S. under the African Growth and Opportunity Act, but that relationship now hangs in the balance.
A sharp shift in U.S. foreign policy threatens to derail an industry that employs thousands and contributes around 5 percent to the country's economy.
"We produce less than 1 percent of global automotive vehicles, so to say. So, in reality, the impact on us is likely to be more disproportionate than those of our peers that produce at the same level. And the risk is actually created -- a concentration risk -- in countries that have greater capacity and are building more; in those countries will be able to absorb some of this," said Parks Tau, South Africa's minister of trade and industry.
Amid growing concerns about overreliance on the U.S. market, Amith Singh, national manager for manufacturing at Nedbank Commercial Bank, emphasized the importance of tapping into regional trade opportunities.
"I think we need to make better use of some of our local agreements, our African continental agreements. How do we leverage that? How do we partner with the government and private sector to start benefiting the countries and the economies aside from the United States? So, those could be the catalyst to drive our localization projects; it could be what we need to drive the African economy as opposed to being completely reliant on the States (United States)," he said.
South Africa is for now standing firm in its decision not to retaliate against steep U.S. import tariffs, set to take effect in just a few days.
Officials in Pretoria acknowledge the challenges posed by the current U.S. administration but are pursuing a diplomatic approach in hopes of maintaining stable relations and preserving the African Growth and Opportunity Act.
US tariffs rock South Africa’s auto industry
