November 24 -- The total amount spent on the logistics industry in China during the first 10 months rose 18.7 percent year-on-year to 6.4 trillion yuan, an indication that the cost of logistics in China remains at an elevated level, reports Shanghai Securities News, citing the China Federation of Logistics and Purchasing (CFLP).

During the same period, the value generated by the logistics industry increased 13.3 percent year-on-year to 131.7 trillion yuan. The growth rate was down 0.1 percentage point from the first nine-month period.

According to the report, there is a close relationship between the rapid growth in logistics costs and the increase in transportation fees, which rose 15.6 percent year-on-year in the first 10 months to 3.3 trillion yuan. The rate of growth was up by 0.2 percentage point from the first nine months.

CFLP attributed the high transportation fees to the rise in fuel and labor costs. During the first 10 months, gasoline and diesel prices rose 17.3 percent and 21.8 percent year-on-year, while that of storage and management fees increased 23.4 percent and 18.7 percent, respectively.

However, sea freight charges fell, with the China Coastal Bulk Freight Index down 8.8 percent month-on-month to average 1,292 points in October.

Industry profitability improved as a result of supportive government measures, according to the report.

During the first nine months, the logistics sector recorded a 15.6 percent year-on-year increase in operating profit. The growth rate was 2.4 percentage points higher than the figure recorded in the first eight months.

Shares of Jiangsu Xinning Modern Logistic (300013.SZ) fell 0.99 percent to trade at 11 yuan per share at 14:40 today.