BEIJING – China is drafting mandatory cold chain standards and will release the standards by yearend at the earliest, according to Qin Yuming, secretary general of Cold Chain Logistics Commission, China Federation and Logistics and Purchasing (CFLP).
Fresh food e-commerce trade size was ¥56 billion ($8.6 billion) in 2015 and is estimated to reach ¥128.3 billion in 2018. However, only 1 percent of the 4,000 fresh food e-commerce platforms made profits in 2014. Self-construction of cold chain logistics was the major cause of deficit. “Fresh food e-commerce companies chose to self-build logistics because current cold chain logistics cannot fulfill their demand,” said He Chunlei, president of miao.tmall.com. Fresh food e-commerce and logistics companies are cross exceeding their business, which lead to overlapping investment and social resource waste.
According to Cai Jin, deputy director of CFLP, the cold chain flow rate of China is 19 percent with over 10 percent logistics loss rate, indicating large room for development.
It is reported that the cold chain logistics volume was around ¥3.5-¥4 trillion last year with an annual growth of 22 percent. Fortune Securities predicted that the whole cold chain market volume will increase to ¥400 billion by 2020 from the current ¥150.9 billion.